Having first turned down a takeover offer from Denmark’s DSV last year, CEVA Logistics has come to the decision not to recommend an offer from French containerline CMA CGM.
CMA CGM moved to acquire CEVA in October last year, and announced a public tender offer the following month of CHF30 per share. While the offer was substantial higher than the CEVA share price at the time, the board says after a review of its business plan with external advisers it felt an indicative midpoint value of its shares was CHF40 each.
CEVA Logistics did say the offer was a fair one from a financial perspective and for shareholders who wish to cash out their shares. However, it points to its own growth potential, its strategic partnership with CMA CGM, and the effects of its acquisition of CMA CGM’s freight management business as key reasons for its higher valuation.
Rolf Watter, chairman of the Board of CEVA, commented: “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.”
CMA CGM already holds a 33% stake in CEVA, and needs a 50% stake to trigger a change of control.