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GLOBAL express delivery firm DHL is acquiring a 49 per cent equity stake in the scheduled-service business of Polar Air Cargo Worldwide Inc., a unit of cargo operator Atlas Air Worldwide Holding, for US$150 million in cash.
Under the terms of the partnership, courier company DHL will pay $75 million when the transaction closes, which is expected to take place in the first quarter of 2007, subject to regulatory approvals.
The remaining $75 million will be paid in two instalments: on January 15, 2008 and November 17, 2008, the Associated Press reported.
Over the course of the contractual period which is said to run for 20 years, DHL will be given access to Polar's fleet of six Boeing 747s plus other aircraft. In return, Atlas Air will gain a revenue stream of more than US$3.5 billion for the duration of the contract, the report said.
DHL is a member of Germany's Deutsche Post AG. |
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