CEVA Logistics’ board has rejected a public tender takeover offer made by CMA CGM which was submitted on 26 November 2018 – which valued each share at CHF 30.
In a statement CEVA said “based on a comprehensive review of the revised business plan for the period up to 2023” developed with external advisors and based on an independent financial opinion the board of directors, with the exception of two conflicted members it came “unanimously to the conclusion not to recommend to CEVA’s shareholders to tender their shares into the offer”.
The board said the valuation of the revised business plan indicates a midpoint value of CHF 40 per share, well above the share price of CHF 30 offered by CMA CGM.
CEVA’s board said it makes its recommendation in the belief that shareholders could realise a higher value with their continuing investment, due to the growth potential inherent in the CEVA business, the effects of the acquisition of the freight management business of CMA CGM ($105 million) and the strategic partnership between CEVA and CMA CGM.
That bid came after CMA CGM, in October 2018, raised its stake in CEVA from 24.99 per cent to 33 per cent following a failed bid by by Danish logistics giant DSV.
CEVA chairman of the board, Rolf Watter said: “The Board of Directors, with the support of independent external advisors challenged the new business plan, has validated it and fully trusts CEVA’s management team in its capability to successfully execute the plan.
“For those reasons, management and the Board will not tender the shares and do not recommend shareholders to tender either.”
CEVA chief executive officer, Xavier Urbain added: “I am proud to be putting the whole organization on track to accelerate our transformation and turnaround action plan in the next three years and beyond.
“This can be achieved by a combination of our commercial and sales focus, cross selling with CMA CGM customers, our own productivity actions, the integration of CMA CGM Logistics within CEVA and sharing resources with CMA CGM in the field of non-strategic procurement and administrative functions.”