Tex Gunning to leave TNT CEO role if FedEx succeeds in takeover bid
21 / 08 / 2015
TNT Express chief executive Tex Gunning will be replaced by David Binks if FedEx’s $4.8bn takeover, due to be launched on Monday, is successful.
The two companies today announced that, on Monday, FedEx will make its recommended public cash offer for all the issued and outstanding ordinary shares of TNT Express.
The offer will run until October 30, with a TNT shareholder meeting called to discuss the deal on October 5.
If the takeover is successful, Gunning will resign as chief executive and member of the TNT Express executive board on the settlement date.
He will be replaced by David Binks, currently regional president Europe, FedEx Express, who will also join the executive board.
TNT chief financial officer Maarten de Vries will remain in office for six months after the settlement date.
Gunning and De Vries will continue to serve on the integration committee for a period of six months following the settlement and will receive a change of control severance payment.
Mark Allen, senior vice president – legal international, FedEx Express, will then also join the executive board.
The TNT executive board and the supervisory board of TNT Express said they fully supported and unanimously recommend the offer of €8 per share to all shareholders for acceptance.
TNT Express’ shareprice at the time of publication was €7.53.
The two companies said that positive advice and opinion has been obtained from, respectively, the Central Works Council and the European Works Council of TNT Express.
PostNL, which currently holds approximately 14.7% of the shares, said it would tender its shares under the offer.
One of the offer conditions is a minimum acceptance level of 95% of shares. This level is lowered to 80% if the shareholders, at the October 5 meeting, vote in favour of an asset sale and liquidation, and conversion.
The deal is expected to be completed in the first half of next year.
Last week’s announcement that the European Commission will extend its investigation into the deal, as it explores the impact on competition, is not expected to affect the timeline.