Shares in UK Mail Group PLC (LON:UKM) shot up 43.2% after it agreed terms for a takeover by the world’s largest courier, Deutsche Post.
The cash offer of 440p a share represents a 43% premium to yesterday's closing price, valuing the FTSE-listed group at around £243mln.
Deutsche Post said the takeover was part of a European expansion drive. The takeover will pit the courier against the Royal Mail for UK parcel deliveries.
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The deal gave shareholders the opportunity to realise their investment, said UK Mail chief executive Peter Kane.
“The board believes UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL's greater financial and operational resources,” said Kane.
UK Mail has a network of more than 50 sites across the UK.
Last year, the group suffered technical problems at a new sorting centre in Coventry, which meant it had to handle bulky parcels manually.
The deal awaits approval by shareholders and European competition regulators.