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FINANCIAL NEWS
Saudi TNT Express, Mail split operations
30 Dec 2010
(MENAFN) Martyn Wright, Managing Director at TNT SAB Express Saudi Arabia, said that the company is planning to separate the operations of TNT express from those of mail and that documentation of the new processes would be released after the 2010 annual results, reported the Saudi Gazette.
Wright said that the suggested separation would enable each service unit to provide more internal focus on each business, while maintaining a sole business investment discipline and capital allocation and leaner. On an external level, more transparency would be possible as each business would have distinct shareholding opportunities, with a clear choice of investment between a value and growth stock.
The director added that separation would be by the beginning of 2011 He said that TNT would keep hold of in a 29.9 percent stake in the Express unit to cover separation costs. These shares would be returned to shareholders as soon as possible.
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