CEVA Logistics (CEVA) has rejected a takeover offer from French container shipping line CMA CGM and claimed its revised business means it is more valuable than the bid suggests.
According to a statement from CEVA, the offer from the CMA CGM, CEVA’s majority shareholder, made on January 28, 2019, valued the firm at US $30 a share.
CEVA says that, based on a comprehensive review of the revised business plan for period up to 2023, indicates a midpoint value of $40 a share, a considerable increase on CMA CGM’s offer.
CEVA said it rejected the deal due to the growth potential inherent in the CEVA business, the effects of the acquisition of the freight management business of CMA CGM and the strategic partnership already in place between CEVA and CMA CGM.
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In October 2018 the carrier increased its stake in CEVA to 33%, a move that looked to accelerate the company’s IT and digital transformation.
The ultimate aim of the partnership is to offer end-to-end logistics solutions to each other’s customers and pioneer the development of integrated logistics solutions.
A CMA CGM vessel approaching the Golden Gate Bridge
Xavier Urbain, CEO, CEVA, said: “I am proud to be putting the whole organization on track to accelerate our transformation and turnaround action plan in the next three years and beyond.
“This can be achieved by a combination of our commercial and sales focus, cross-selling with CMA CGM customers, our own productivity actions, the integration of CMA CGM Logistics within CEVA and sharing resources with CMA CGM in the field of non-strategic procurement and administrative functions.”
Rolf Watter, Chairman of the Board of CEVA, said: “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.”
The partnership was struck after CEVA rejected a separate takeover bid from Danish freight company DSV, a story PTI reported on.
