Deutsche Post confirms plans to buy stake in Sinotrans



The game is now on in China....

The Chinese government is planning to launch a Sinotrans initial public offering and we are observing the process to find out if it is possible for foreign companies to participate, company spokesman Martin Dopychai said.

Dow Jones Newswires reported Jan. 7 that Sinotrans aims to list its shares in Hong Kong February 13, citing sources. The Chinese firm plans to raise between US$350 million and US$400 million through the offering.

Uwe Doerken, Deutsche Post board member responsible for its express delivery business, told German daily Financial Times Deutschland Wednesday that he hoped the company would become the preferred candidate for receiving a stake due to its joint venture with Sinotrans.

Dopychai said it is difficult to specify the time frame in which the Chinese government plans to issue the IPO. But we are carefully observing the developments, he added.

Deustche Post's subsidiary DHL is a market leader in the express business segment in China and has a market share of about 40 percent, Dopychai said.

Deutsche Post sees China as a high growth market, Dopychai said. The company declined to disclose the revenues generated from the region.