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Austrian Post's Turkish Subsidiary in Conflict with Majority Owner

Published: July 5, 2016; 15:00 · (FriedlNews)

Post AG is involved in a buyback conflict regarding the Turkish subsidiary. Post took over a 25-percent stake in Turkish parcel delivery service Aras Kargo in 2013; it had been granted an option to buy another 50 percent of the shares. The company has been negotiating to use the option for a year now, but has been unable to reach a compromise.

Austrian Post's Turkish Subsidiary in Conflict with Majority Owner / Picture: © www.crossed-flag-pins.com

The owner of the remaining 75 percent, the business family Aras, rejects the option altogether and wants to buy back its 25 percent stake instead.

The majority owners of Aras Kargo, Evrim Aras and Meral Aras, think a take-over of a majority stake by Post AG would affect the potential of the Turkish firm and would lead to big risks. Evrim Aras pans Austria’s Post for "not being able to keep up with the vision of a global brand”.

The family had agreed to the acquisition in 2013 because it had though Post AG a good partner to develop Aras Kargo into a global brand. However Post is not flexible enough and lacks the growth potential of Aras Kargo, the Turkish owners claim. Investments of EUR 47 million had been agreed on, apparently, but only one third was actually spent.

The family will try all means possible to prevent Aras Kargo from losing market value, it was stressed. Meanwhile Post AG is intent on raising its stake in the Turkish subsidiary. Post does not want to accept the Aras’ offer to buy back the 25-percent stake of Aras Kargo either.

(EUR 1= USD 1.111)

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