Toll Holdings shares rise to five-year high after Japan Post's $5.1bn takeover bid

Shares of Toll Holdings, Australia's largest supply chain company, rallied to a five-year high on Wednesday after Japan Post, a Tokyo-based financial services company, said it would buy Toll for $5.1bn.

The ASX-listed Toll rallied more than 47% to a high of A$8.9, its highest since January 2010 and up A$2.87, or 47.2%, on the day.

The acquisition, which Toll has accepted, would enable Japan Post to a reach as much as 55 countries and boost its earnings outlook ahead of the listing scheduled for later this year.

Japan Post, the Japanese state-owned post and logistics monopoly, has offered a 49% premium on Toll's Tuesday closing price in order to realise its global expansion plans.

"Given our global expansion, it is the best partner," Taizo Nishimuro, president of Japan Post Holdings, told a press conference in Tokyo.

According to Japan Post, the combined entity would be the world's fifth-largest logistics group after FedEx Corp in terms of revenue.

Technically, Toll shares now aim the A$9.3 mark, a break of which will take it to its highest since May 2008.

The big leap on Wednesday has taken it through resistance A$6.2, A$7.04, A$7.54 and A$8.0, which have now turned to supports in the reverse order.