Allied's ParcelDirect buyouts fail to fly

Vicfast and Hills to close as sale deal falls through

By Rob McKay | August 8, 2011

The Allied Express purchase of two ParcelDirect Group (PDG)
companies has crashed and the pair will close.

A spokeswoman for DHL, which
owns half of PDG in a joint venture with New Zealand Post, confirmed the failure of the deal and fall of Vicfast ParcelDirect and Hills ParcelDirect today.

She said the
agreement will no longer take place and the companies would close, effective August 31.

The last pick-ups will occur on August 26.

Allied Managing Director Michelle McDonald had said late in June that her company intended to buy the firms.

A spokewoman for her company confirmed that the sale
had now been been
"postponed indefinitely".

Details are scant on the reason for the deal not going ahead and the future of PDG unclear.

NZ Post Group Chief Executive Brian Roche had said in late May that
it had been pursuing a partial divestment, due by June 30.

Last financial year, Government-owned NZ Post had reduced the valuation of PDG by $NZ29.9 million ($A23 million), according to a report to the New Zealand Parliament. DP DHL s 2010 annual report reveals PDG lost Euro 23.2 million ($A31 million).

ATN was awating comment from NZ Post at deadline today.

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