CEVA Logistics has announced that it has rejected an unsolicitated takeover proposal.
Following a review of the offer, the board of directors unanimously concluded that the proposal was not in the best interest of the company and its shareholders.
According to a statement, the proposal “significantly undervalues CEVA's prospects as a standalone company”, particularly as it has been exploring measures with CEVA to unlock its full potential.
Furthermore, following the rejected bid, CEVA’s board of directors has agreed to modify the current stand-still agreement between itself and CMA CGM, its largest shareholder.
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The French ocean carrier, which has agreed to not launch a takeover offer for the next six months without the board of directors’ recommendation, is now allowed to increase its holding in CEVA Logistics up to one third.
In addition to this, CMA CGM has announced its own plans to unlock CEVA’s potential.
By generating new commercial opportunities, through its relationships with customers looking for more integrated end-to-end solutions, and supporting CEVA’s reorganization and development strategy, CMA CGM projects that the logistics company will become more profitable.
The initiative to support CEVA will also include accelerated investments to secure an IT transformation, which is expected to drive renewed commercial success and boost operational efficiencies.