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Tuesday, Nov 09, 2004

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DHL to pick up 68% stake in Blue Dart for Rs 566.5 cr

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Mr Bryan Jamison (left), Regional Director, SEA & Indian Sub-continent, DHL Express Asia Pacific, with Mr Clyde Cooper, Managing Director, Blue Dart, at a press conference in Mumbai on Monday. - Shashi Ashiwal

Mumbai , Nov. 8

DHL has announced an investment of Rs 730 crore for the acquisition of a majority stake in Blue Dart Express Ltd, the largest domestic express player. This includes an acquisition of 161.8 crore shares aggregating 68 per cent equity in Blue Dart at Rs 350 per share for a total of Rs 566.5 crore (euro 99 million) from the three founding shareholders of the Indian company and Schroder Capital Partners.

While the founding shareholders are Mr Clyde Cooper (16.6 per cent), Mr Tushar Jani (16.74 per cent) and Mr Khusro Dubash (15.89 per cent), the remaining equity portion being acquired by DHL includes 17 per cent from New Field Holding, the investment arm of Schroder Capital Partners Ltd. The remaining 1.98 per cent equity that is to change hands is held by Blue Dart Courier Services.

On Monday, Blue Dart hit a 52-week high of Rs 331 before closing at Rs 320.25. It had opened at Rs 324.

"It will be business as usual for both the companies which will run independently. There are natural, inherent synergies between the two companies and the current board of Blue Dart will remain in place," said Mr Bryan Jamison, Regional Director, South-East Asia and Indian Sub-Continent, DHL Express Asia Pacific.

DHL said it had finalised agreements with the shareholders. In line with statutory requirements, DHL will make a 20 per cent mandatory open offer to the public shareholders on November 11 at Rs 350 per share in cash, subject to the terms and conditions set out in the offer document, thus taking up the total investment by DHL to Rs 730 crore.

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DHL to pick up 68% stake in Blue Dart for Rs 566.5 cr

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