SNCB Holding confirmed today that a binding Memorandum of Understanding (MoU) had been signed with a major European investment fund over the acquisition of 100% of the shares in the ABX LOGISTICS Worldwide group.

This Memorandum of Understanding will however only come into effect subject to the approval by the European Commission of the restructuring plans of the ABX LOGISTICS Worldwide group notified to the Commission in Feburary 2003 and supplemented in January 2005. The Commissions decision on the group’s restructuring plan is expected in the next few months.

SNCB Holding is convinced that privatisation will maximise ABX LOGISTICS future development opportunities. The management of SNCB and that of ABX LOGISTICS remain firm in their wish to privatise the company, an intention they have expressed on several occasions since 2003, since this will enable the group to maintain the high standards of service and flexibility offered to customers throughout the world.

At the present stage of developments within the European Commission, the parties concerned prefer to abstain from any further comments. After almost three years of procedure the European Commission approved in DEcember 2005 the proposed financial restructuring of ABX LOGISTICS Worldwide. The Commission approved the capitalisation of ABX LOGISTICS Worldwide by its parent company, SNCB, essentially through the conversion into capital of 176 million euros of debts owed by ABX LOGISTICS to SNCB. In addition, the Commission raised no objections to the investments made by SNCB during the period from 1998 to 2003 in relation to the creation of the ABX LOGISTICS group. It also approved SNCB’s disposal of the domestic road services in France in March 2005, judging that this operation was carried out under market conditions. The approval of the financial restructuring clears the way for the development and privatisation of ABX LOGISTICS Worldwide.

The Belgian group ABX LOGISTICS Worldwide is one of Europe’’s Top 10 transport & logistics enterprises handling air, sea and road consignments. Established in over 30 countries, the group has a turnover in the region of 2.5 billion euros and a workforce in the vicinity of 10,000 people. 95% of group turnover is achieved outside Belgium and half of it in the air & sea sector. In 2004, ABX LOGISTICS recorded positive Earnings Before Interest and Tax (EBIT). In terms of size of workforce and turnover, ABX LOGISTICS is one of the top 15 companies in Belgium. The ABX LOGISTICS international road transport network is one of the densest in Europe with 190 destinations served on a daily basis ; its air and sea freight forwarding network covers the whole of the world under the label ABX LOGISTICS and through stable partnerships with other operators.

SNCB Holding is the holding company of the SNCB/NMBS Group (Belgian Railways) and the 100% owner of ABX LOGISTICS. It employs 38,000 people in Belgium.

Source: ABX Logistics

The Glossary of Terms in Logistics & Shipping is the most comprehensive paper-based dictionary and therefore the standard for defining terms used in the area of Logistics and Shipping. Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com

paperback student version $ 19,99 hardcover executive version $ 29,99

| Permanent Link | Print This eLog |

(Visited over 19414 times)