CEVA Logistics has rejected a takeover bid from DSV, saying the CHF27.75 per share offer significantly undervalues the business.
Following CEVA’s announcement that it had rejected an offer from an unnamed bidder, DSV released a statement saying that it was the bidder.
It said: “DSV A/S can confirm that it has made a private proposal to CEVA’s Board of Directors to acquire CEVA for CHF 27.75 per share.
Our proposal has been rejected by CEVA’s Board of Directors, and DSV has no dialogue with CEVA regarding a voluntary public tender offer for the outstanding equity of CEVA. DSV has long respected and followed CEVA’s business and believes combining the two companies would deliver significant value to all stakeholders (including shareholders, employees, customers and suppliers). 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.
In the light of the bid, CEVA has agreed that its largest shareholder CMA CGM can increase its stake from the current 24.99 per cent to one third of the voting rights.
CMA CGM has agreed, under certain conditions, to not launch or trigger an offer without the recommendation of the CEVA board in the next six months – other than an offer which is superior to another offer.
IN a statement, the CEVA board highlighted the company’s prospects as a standalone company particularly it, with CMA CGM as a strategic partner, has been exploring measures to enhance performance to unlock the full potential of the business.
“The unsolicited proposal is therefore inadequate. Accordingly, the Board of Directors has decided to not engage on the basis of this unsolicited proposal.”