The French container transportation and shipping company CMA CGM has launched their public tender offer for shares in the global logistics and supply chain provider CEVA Logistics. Opening on the 12th February the offer price was 30 CHF per share.
Chairman and CEO of CMA CGM, Rodolphe Saadé said, “The launch of this public tender offer is in line with CMA CGM’s overall strategy. By developing a logistics offering to complement our maritime activity, we will be able to propose a full ‘end-to-end’ service to our customers.
This is a milestone in the Group’s history. Once the takeover is completed, CMA CGM will become a 100,000-employee strong Group, generating over USD 30 billion in revenue.”
The CEVA share value of CHF 30 is 12.2% above its average listing over the last 60 days, and 62.9% above its CHF 18.42 share price on October 10, 2018, its last day of listing before the announcement of an unsolicited takeover offer by a third party. The offer has been given full support from the CEVA Logistics board members.
The French shipping company currently controls 33% of CEVA Logistics capital. The offer is part of the logistics providers strategic plan which was devised in conjunction with CMA CGM. Both companies are working together to implement major cooperation programs with the following objectives:
- A turnover of USD 9 billion by 2021
- Achieve an adjusted EBITDA between USD 470 and 490 million
The above will be achieved with the following plan:
- Cost reductions due to pooled operations, as well as synergies, such as purchasing and shared services
- Develop commercial synergies by proposing the CEVA offer to CMA CGM customers, and vice-versa
- The integration of CMA CGM’s logistics activity) into CEVA to increase CEVA’s footprint in Ocean freight forwarding
When the above is complete, CMA CGM Group will become a global leader in transport and logistics, boasting a workforce of over 100,000 people and generating over USD 30 billion in revenue.