DHL intends to delist Indian subsidiary Blue Dart
DHL is planning to delist Indian express giant Blue Dart from the Mumbai Stock Exchange with an offer to Blue Dart shareholders, Indian news outlets reported Monday.
DHL, which already owns an 81 percent stake in India’s biggest courier company, wants more direct control over the company as it attempts to build on robust growth in the Indian market. Blue Dart’s revenue grew 88 percent in the first quarter of this year.
John Mullen, chief executive officer of DHL Express, told the Economic Times that delisting the company would allow DHL to make faster decision and centralize activities from DHL’s regional headquarters in Singapore.
Additionally, he said he could envision a logistics hub in India at some point on the scale of DHL’s new $175 million hub in Shanghai.
DHL has tried to delist Blue Dart before since its 2005 acquisition of a majority stake in the company. In fall 2006, it offered shareholders more than $12 a share, but Mullen said the market climate wasn’t right for the delisting.
Blue Dart is the market share leader in India and operates six of the country’s meager fleet of 12 dedicated cargo planes.