BREAKING: DSV makes unsolicited $4 billion offer for Panalpina

panalpina

Denmark’s DSV has made an unsolicited bid to buy Swiss logistics company Panalpina for nearly USD 4.05 billion.

Panalpina said on Wednesday it had received an unsolicited, non-binding proposal from DSV to acquire the company for CHF 170 per share.

The consideration consists of 1.58 DSV shares and CHF 55 in cash for each Panalpina share. Based on closing prices as of 11 January 2019, the value of the offer is CHF 170 per share or roughly CHF 4.0 billion.

Panalpina’s board said it would consider the proposal, despite a recent statement that it aimed to remain independent. DSV said it in its statement that it had not yet received a response to its indicative and private proposal from Panalpina’s Board of Directors.

The move, which would create a logistics behemoth with nearly USD17 billion in annual turnover, comes after DSV failed in October last year to acquire Switzerland-based CEVA Logistics in a similar unsolicited bid which valued CEVA at around $1.6 billion.

On this latest offer, DSV says: “A combination of DSV and Panalpina would create a leading global transport and logistics company with significant growth opportunities and potential for value creation. A combination presents a unique opportunity for both companies and their respective stakeholders including shareholders, employees, customers and suppliers.”

The indicative proposal will provide Panalpina’s shareholders with a premium of 24 per cent to Panalpina’s closing share price of CHF 137.5 as of 11 January 2019 and 31 per cent to the 60-day VWAP of CHF 129.5 as of 11 January 2019, DSV says.

The combined business would generate expected revenues of more than DKK 110 billion (USD 16.83 billion) and EBITDA of more than DKK 7.0 billion on a pro-forma 2018 basis (excluding any synergy benefits). The structure of the offer will allow Panalpina’s shareholders to participate in the benefits of the combination, DSV adds.

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DSV makes unsolicited $4 billion offer for Panalpina
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DSV makes unsolicited $4 billion offer for Panalpina
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Denmark’s DSV has made an unsolicited bid to buy Swiss logistics company Panalpina for nearly USD 4.05 billion.
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AsiaCargoBuzz.com
AsiaCargoBuzz.com
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