Japan Post Holdings Co. is considering selling Australian logistics unit Toll Holdings Ltd., informed sources said Thursday.
The company asked major securities firms this week to present proposals on the matter, according to the sources. It is looking at a wide range of options, including the sale of some Toll operations, they said.
The move comes after the group’s international logistics division centering on Toll expanded losses in the April-June quarter amid the coronavirus pandemic.
In 2015, Japan Post acquired Toll for about ¥620 billion, with the goal of strengthening its overseas logistics network, mainly in the Asia-Pacific region.
In the year through March 2017, however, Japan Post fell into the red for the first time since its privatization, due to the Australian unit’s sluggish performance.
Within the group, there remain cautious views about selling out the Australian firm, which could make it difficult for the group to pursue a strategy of achieving growth by strengthening its overseas network.
In its earnings briefing last week, Japan Post explained that it has no concrete plans to sell Toll at the moment, while indicating that it is considering streamlining operations.
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