New Zealand Post said yesterday that it had received $80 million for the sale of half of its courier business to German firm DHL.
The deal, unveiled on December 20, was for Deutsche Post-owned DHL to buy 50 per cent of NZ Post subsidiary Express Couriers.
The deal came under
attack before Christmas from opposition MPs and courier operators because the terms were kept secret and rival operators did not get a look in.
Spokesman Ian Long said the Government-owned NZ Post had received $80 million from DHL.
However, the final price would be a multiple of Express Couriers' earnings for the year to June 30, 2005. This means DHL could pay extra after June 30 or NZ Post would refund part of the sale price, Long said.
NZ Post expects the final deal to be worth $80 million to $90 million, valuing Express Couriers at $160 million to $180 million.
DHL took over joint running of the business on January 1.
National Party finance spokesman John Key has suggested this means DHL had no incentive to ensure Express Couriers operated at peak efficiency this year because it would force up its purchase price.
Long said NZ Post had no fears of this happening. "It's a strong partnership and both partners will be working to optimise the business." Freightways and Toll Holdings, rival courier operators, told the Herald in December they were disappointed the sales process was not open to them. Freightways and Express Couriers are the dominant players in the local courier market.
NZ Post says DHL's presence in Southeast Asia, China, Japan and India would give it better access to overseas opportunities.
