What the Heck Happened to Toll Holdings Share Price Today?

What Happened to the Toll Holdings Share Price?

Toll Holdings Limited [ASX:TOL] is an integrated logistics business in the Asian Pacific region. Toll operate a network throughout Australia, Asia and Europe. The company is broken up into five divisions: Toll Global resources, Toll Global Logistics, Toll Global Forwarding, Toll Global Express and Toll Domestic Forwarding.

Toll Holdings is one of Australia’s oldest companies. The company had very humble beginnings in Newcastle, when it was a horse and cart hauling coal.

The stock gained a massive 47.20% on Wednesday

Why Did This Happen to TOL Shares?

Anyone who bought shares in this company yesterday must be grinning like the Cheshire cat today.

Yesterday, Toll Holdings closed at $6.08. By the end of trade today, the share price finished at $8.95.

Investors in Toll Holdings began the trading day with news that Japan Post had made a takeover bid of $9.04 per share. Japan Post value the company around $6.49 billion.

Acquiring Toll Holdings will see Japan Post expand their market share. Japan Post’s business model is increasingly reliant on the internet.

Japan Post will take responsibility for Toll’s $1.5 billion debts. And registered shareholders on March 2 will get a 13 cent per share interim dividend.

After news of the takeover was released, Toll Holdings announced a 22% drop in 2014 first half profit to $136 million.

10 days ago, Toll Holdings was downgraded to a ‘sell’ by research firm Citi.

The takeover, once approved by 75% of shareholders and the Australian Foreign Investment Review Board, is expected to be completed by June this year.

What Now for shareholders of Toll Holdings?

Thank your lucky stars, cash in and run. Book that holiday, buy that car, or take your money out of Toll Holdings and reinvest your profits somewhere else.

Japan post is planning an initial public offering some time in the next 12 months.

Shae Smith
Editor, Money Weekend

Join Money Morning on Google+


Since starting out in the financial markets over a decade ago, Shae has extensive experience across various aspects of the industry. Shae cut her teeth in the derivatives industry, teaching clients basic trading techniques with technical analysis.

Joining Fat Tail Investment Research eight years ago, Shae has worked across a number of publications, such as Australian Small-Cap Investigator, Gold Stock Trader and Microcap Trader. She’s spent the past two years however, honing her macro analysis skills alongside Jim Rickards, showing Australians how to invest and profit form global macro trends.

Drawing on her extensive experience, Shae is a contributor to Money Morning, and lead editor of sister-publication Markets & Money, where she looks at broad macro trends developing around the world, combining them with her distaste for central banks and irrational love of all things bullion.


Money Morning Australia