Source - SMW
UK Mail Group has recommended Deutsche Post AG's 440p-a-share cash offer. It valued UK Mail's share capital at about £242.7m.

The offer assumed UK Mail shareholders would be entitled to receive a 5.5p a share dividend. 

"We have made good strategic progress in recent years, establishing leading positions in our key markets of parcels and mail, investing in additional capacity in our operations and in IT and product and service innovation," said UK Mail chairman Peter Kane.

"However, the Board believes that UK Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of Deutsche Post DHL's greater financial and operational resources. 

"Our customers will have direct access to Deutsche Post DHL's integrated global parcel network and comprehensive logistics capabilities; we will have opportunities to win additional business from Deutsche Post DHL's existing customer base; and there will be significant synergies including additional volumes flowing through our network from Deutsche Post DHL's global operations.

"Furthermore, the Offer provides UK Mail Shareholders with the opportunity to realise their investment for cash at a significant premium to the levels at which the share price has traded in recent months."

At 9:08am:

(LON:UKM) UK Mail Group PLC share price was +133.13p at 440.63p