Austrian Post has announced that it has reached an agreement with Aras Kargo to increase its stake in the Turkish parcel delivery firm to 80%, saying that it would pay a price in the “mid-double-digit million euro range.” The statement said that Baran Aras will continue to be a co-owner, holding a 20% shareholding, and will also serve on the Board of Aras Kargo.
This development was the culmination of a dispute between Austrian Post and the Aras family. The wrangling began in 2016 when the Austrian Post sought to exercise an option to buy an additional 50% stake in Aras Kargo from the founding Aras family following its purchase of a 25% stake in July 2013. The carrying amount of the shareholding equalled Euros 23.3 million (USD 26.18 million) as of December 2019. Aras Kargo rejected the plan at the time and offered to buy back the Austrian company’s stake, saying Austrian Post was not the right partner for its envisaged international expansion and that its staff did not want an Austrian owner.
Founded in 1979, Aras Kargo now has around 14,000 employees, approximately 900 branch offices and a vehicle fleet of more than 4,000. It serves around 12 million individuals each month, according to its official website. Aras Kargo is one of one of the leading Turkish parcel services providers , generating annual revenue of around TL 1.37 billion (USD 200 million) in 2019, according to the Austrian Post..
Austrian Post said that the closing of the deal is expected in the coming weeks, subject to regulatory approval.
Austrian Post is the company responsible for postal service in Austria. This company was established in 1999 after its split-off from the mail corporate division of the former state-owned PTT agency Post and Telegraph (PTV). It is listed on the Vienna Stock Exchange.