The Christine Holgate-led management of Team Global Express made a guest appearance at the UBS investment conference in Sydney last week, with the private equity-owned company presenting to fund managers attending the conference.
Given that most attendees were investors in listed stocks, it seemed highly unusual to have the private equity-owned business presenting in what was a conference largely for ASX-listed management teams to court investors.
But perhaps not, if it, too, soon hopes to be listed. While the company on the whole has been loss making, according to its most recently filed accounts, DataRoom understands that there had been some discussion in the past about a move to float parts of the TGE business.
Ms Holgate is no stranger to the listed market landscape, given that she previously ran vitamin and supplements company Blackmores, resigning in 2017 to become the chief executive of Australia Post.
Investment bank UBS has been previously working on a sale process for TGE, but it is operating in an industry hit by higher costs and weak economic conditions.
The result compared to a $163m loss in the previous corresponding year and came despite a lift in revenue to $2.95bn. TGE reported earnings before interest, tax, depreciation and amortisation for the year to March of $151m and at least $70m of cashflows before taking into account the one-off separation and non-recurring transformation costs.
However, net reported cash from operating activities reduced significantly in the current financial year to a $5.9m outflow, compared to a $95.3m inflow in the previous corresponding 12 months.
The accounts, which are for the Australian operations and exclude its New Zealand business, said since TGE was sold by Toll Holdings the group has incurred more than $200m of spending on IT separation, rebranding and the settlement of acquisition liabilities.
The biggest cost to TGE was direct transport and logistics costs at $1.5bn and employee benefits at $900.8m, with the group agreeing to pay staff increases in line with inflation.
TGE provides express parcel, freight delivery and domestic forwarding services in Australia, and transport and contract logistics services in New Zealand.
It was purchased in 2021 by Allegro Funds from Japan Post out of Toll Holdings for $US10m ($15.5m) and renamed from Toll Global Express to Team Global Express, with Allegro recapitalising the company with $500m. The company was loss-making at the time, and Allegro’s plan has been to turn the business around.
KKR seeks to offload Colonial First State stake
KKR is understood to be creating a data room for at least one prospective trade buyer to consider the $3bn-plus wealth management business, Colonial First State.
Anglo ready to announce winner of coal mine auction
A decision by Anglo American about its Queensland-based coal assets is believed imminent, a week on from when final bids were due.