DHL 2008 Annual Report Download - page 97

Deutsche Post World Net Annual Report 2008
Group Management Report
Further Developments and Outlook
Further Developments and Outlook
Report on post-balance sheet date events
John Allan to leave the company
Chief Financial O cer John Allan  has decided to leave the company of
his own volition. Following the extension of his contract in early , Mr Allan will
make use of a contractual option enabling him to end his current term of o ce on
 June .
Agreement on pan-European telecommunications services signed with Telefónica
On  January , Deutsche Post World Net entered into a services agreement
worth nearly   million with Spanish telecommunications provider Telefónica.  e
telecommunications company will provide mobile,  xed voice and data services to
, company employees at , sites in  European countries outside Germany,
starting in spring . We expect to save over   million over the  ve-year term
of the agreement.
Structure of Postbank contract adjusted
On  January , Deutsche Post  and Deutsche Bank  agreed on an
improved transaction structure for Deutsche Bank’s acquisition of Deutsche Postbank 
shares based on the previous purchase price.  e transaction was closed on  February
.  e contract now comprises three tranches. Deutsche Post received the proceeds
of the whole transaction on the day of the closing and thus three years earlier than
expected.  e cash value of the transaction is now  . billion.
As a  rst step, Deutsche Bank acquires  million Postbank shares – corres-
ponding to a stake of .  – in a non-cash capital increase. Upon entry of the capital
increase in the commercial register, Deutsche Post acquires a shareholding of around
  in Deutsche Bank. Deutsche Post can dispose of over half of this holding from the
end of April ; the other half may be disposed of from mid-June. It has been agreed
that mechanisms designed to avoid market disturbances will be applied to any such
sales. A certain amount of hedging has been carried out for the interim.
At the same time, Deutsche Bank fully underwrote, in a second tranche, man-
datory exchangeable bonds issued by Deutsche Post. A er three years, these bonds
– including interest payments accrued – will be exchanged for  million Postbank
shares, or a .  stake.  e bonds are zero-coupon bonds with a  accrued interest
per year.  e cash value of the bonds at the time of the closing is  . billion.
Put and call options remain in place for the remaining . million shares (or
. ). Deutsche Bank pays a cash collateral for the options amounting to the cash
value of  . billion at the time of the closing.  e exercise periods are now set between
the  th and  th month a er closing.  rough the collateralisation of the put option
and the subscription to the mandatory exchangeable bonds, Deutsche Post receives
 . billion in direct liquid funds, of which  . billion were received by Deutsche Post
on  January  and a further . billion on  February .
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