Almost 21.5m Ceva shares were tendered at 30 Swiss francs each, giving a transaction value of around $641m. Upon settlement of the offer, CMA CGM, which already held 50.6% of the automotive logistics provider, will own 89.47% of Ceva’s share capital and voting rights.
Given the size of the holding, the shipping company now has the right under the offer prospectus to implement a ‘squeeze-out’ and apply for delisting of Ceva’s shares from the SIX Swiss Exchange.
That is expected to take place in the third quarter, once all stock exchange and legal conditions are fulfilled, said Ceva, whose directors have recommended that remaining shareholders tender their shares during the additional offer period that closes on April 2.
It is anticipated that Rodolphe Saadé, chairman and CEO of CMA CGM, will be elected Ceva’s chairman at the company’s annual general meeting on April 29.
When CMA CGM released its 2018 financial results earlier this month, Saadé said: “Through the friendly public tender offer we are conducting on Ceva, our ambition is to become a world leader in both transport and logistics, thereby providing a complete and efficient service offer to our customers.”
The companies’ agreement envisages Ceva taking over CMA CGM’s freight management business for $105m. There would also be a stronger focus on commercial performance and profitability, with cross-selling, a more simplified organisation, a strengthened management team, upgrading and standardisation of processes and IT architecture, and the acquisition by Ceva of CMA CGM’s freight management activities (CCLog).