Japan Airlines (JAL) has sold a 20% stake in DHL Worldwide Express as it aims to cut its long-term debt by ¥350 billion ($3.5 billion) by March 2002. The move paves the way for DHL to float 23% of its equity via an initial public offering in the next few years.
The express cargo specialist says JAL's shares were bought by two investment trusts "which have also subscribed for an issue of new shares in the company". The trusts are understood to have been formed by DHL to buy the JAL shares, after taking a 3% stake from Japanese trading company Nissho Iwai.
Industry observers say the offering of 23% of DHL could fetch as much as $2.5 billion.
JAL, formerly DHL's biggest shareholder, retains a 6% stake and says the sale will help slash its ¥1.525 trillion debt.
Source: Flight International
