TNT confirms position on net proceeds at completion from sale of logistics activities - Source TNT - October 5,2011

TNT confirms position on net proceeds at completion from sale of logistics activities

In reaction to press coverage, TNT confirms the expected net proceeds of the announced sale of its logistics activities to lie between € 1.2 billion and € 1.3 billion at completion. A further description on the basis of what has been stated and explained on announcement is summarised below: The transaction value of the sale is € 1,480 million, on a cash and debt  free basis, of which € 15 million will be received in the form of a 5% equity  stake in the new company. The estimated net proceeds to be received by TNT at  completion are in the range of € 1.2 billion - € 1.3 billion. The difference between the expected net proceeds and the total transaction value reflects deductions by the buyer for finance leases, pension and other  employee liabilities, and various costs for separation and re-branding, leading  to payment at completion of around € 1.3 billion. TNT currently expects to incur various  other deal related expenses (including tax) of up to € 100 million, bringing the estimated net proceeds in the range € 1.2 billion to € 1.3  billion. The external group facility of around € 220 million, disclosed in TNT’s  2005 annual report as a current loan, allocated to TNT Logistics Canada, will expire and will be redeemed by TNT before completion. The estimated € 1.2 billion to € 1.3 billion net proceeds are therefore  freely available to TNT for allocation after completion, including the announced share repurchase of up to € 1 billion. The estimated book result on the transaction at completion is expected to be close to neutral, before the various other deal related costs. Note that all figures can only be calculated definitively  after completion, based on completion accounts including provisions, as is customary in transactions of this size. Source: TNT

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