DSV has abandoned its second bid for CEVA Logistics, made on October 18, 2018, to acquire the business for CHF* 30.00 per share. The revised proposal raised the original offer of CHF 27.75 per share by 8.1%.
As of October 1, 2018, CEVA’s share price stood at CHF 18.70 meaning that the proposal would provide CEVA shareholders with a premium of 60.4% and a 45.8% premium to the 60-day VWAP of CHF 20.58 as of October 1, 2018.
CEVA Logistics, in a statement, commented that it had seriously and diligently analysed the proposal but needed more time to review.
However, DSV stated that: ‘Based on the unwillingness of the Board of Directors of CEVA to engage directly with DSV at the price per share offered we have decided not to pursue an acquisition of CEVA.’
DSV’s hunt for its next big deal continues. Following from the successful $1.35bn acquisition of UTi Worldwide, in 2015, the proposal shows the intent of DSV to pursue further M&A activity.
*CHF = $1.01 / €0.88
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