CEVA Logistics rejects DSV takeover proposal

The Board of Directors of CEVA Logistics has announced that it has received an unsolicited non-binding proposal to acquire the company, from its Danish rival DSV, at CHF*27.75 per CEVA share. The takeover bid would have been worth around $2.5bn after $1bn of debt is added to the $1.5bn valuation of the company. 

The Board of Directors of CEVA Logistics reviewed the proposal and came to a unanimous decision that it was not in the best interest of the company and its shareholders. Specifically, they concluded that the $1.5bn cash bid significantly undervalued CEVA’s prospects as a standalone company.

CEVA’s shares surged nearly 27% to CHF23.35 in early trading, still short of the informal bid price.

French shipping group CMA CGM, CEVA’s largest shareholder, with a stake of just under 25%, said it supported CEVA’s decision not to engage in the unsolicited offer.

As a result of the bid, the Board of Directors, on request of CMA CGM has agreed to modify the current stand-still agreement between CEVA Logistics and CMA CGM. Now, CMA CGM is allowed to increase its holding, which is currently limited to 24.99% due to run until November 5, 2018. This will enable CMA CGM to increase its stake up to one third of the voting rights of CEVA Logistics with immediate effect.

DSV, commenting on the takeover bid, said that: “We are confident that a combination would be in the best interests of the stakeholders of both companies as it presents a unique opportunity to build on the successful legacies of our businesses by extending our service offering and giving our combined operations additional scale.”

However, DSV has indicated that it would unlikely make a follow-up offer. 

Source: CEVA Logistics

*CHF = $1.01 / €0.88