DSV mulls buying Panalpina; offers price of CHF 170 per share

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Jan 21, 2019: Denmark-based logistics giant DSV has made a bid to acquire forwarding firm Panalpina at a price of CHF 170 per share, comprising a mix of cash and DSV shares.

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

A statement from DSV informs, %u201CWe have not yet received a response to our indicative and private proposal from Panalpina%u2019s Board of Directors.%u201D

Highlighting the benefits of the acquisition, DSV states in its official release: %u201CA 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.%u201D

DSV added that acquisition will provide Panalpina%u2019s shareholders with a premium of 24 percent to Panalpina%u2019s closing share price of CHF 137.5 as of January 11, 2019 and 31 percent to the 60-day VWAP of CHF 129.5 as of January 11, 2019.

The combined business would generate expected incomes of more than DKK 110bn and EBITDA of more than DKK 7bn on an ace forma 2018 premise (barring any cooperative energy benefits). The structure of our offer will enable Panalpina's investors to take an interest in the benefits of the combination.

DSV has a long and successful track record of partnering with companies, and the combined business will be exceptionally well positioned for future growth.

Last year, in October, DSV had made a similar unsolicited bid to acquire CEVA Logistics. While the latter%u2019s Board of Directors were considering all the options in the interest of the company and all the shareholders and stakeholders, it announced the withdrawal of DSV%u2019s proposal.

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