Australian transport group Toll Holdings has received a $6.5 billion takeover offer from Japan Post.
The offer is $9.04 per share, about 49% more than Toll’s closing price $6.08 yesterday. Post the takeover announcement, the shares are trading 47% higher to $8.94.
Japan Post says its local market has shrunk with a declining population and a growing reliance on the Internet for communciation.
“These factors prompted Japan Post to conclude that it must expand overseas operations to bolster earnings,” the company says.
Toll’s board of directors says the offer is “compelling” and has recommended shareholders accept the offer.
The offer price represents a market capitalisation of $6.486 billion.
Toll will be run as a division within Japan Post and will retain its name.
CEO Brian Kruger will report to Japan Post CEO Toru Takahashi.