Toll has announced its plans to offload its struggling $3.5 billion Australian courier business, Toll Global Express, following plummeting profits.
Earlier this year, a Toll Group spokesperson said, “There is no plan to sell Toll or parts of Toll,” though this stance has since changed.
Reports indicate that Toll Global Express lost $101 million in the June 2020 quarter, and Toll Group has confirmed that J.P. Morgan and Nomura have been appointed as financial advisors to manage the sale process of this division.
According to the Toll Board, a sale of Global Express would not affect Toll’s Global Logistics and Global Forwarding businesses.
The Australian Financial Review reported that the sale would include the disposal of 150 depots, two ships, 39 planes, 3500 prime movers, 900 trailers, and 6000 vans and motorbikes.
Japan Post, which bought out the logistics giant for $6.5 billion in 2015, has come under fire in recent times.
The Global Express division oversaw the IPEC delivery business, which was at the centre of a serious corruption problem, according to three former managers, who chose not to be named.
Though the Global Express division is now up for grabs, Toll Group said in a statement, “There is no certainty that a transaction will occur,” revealing that any further announcements will be made when appropriate.