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DSV makes bid for Panalpina – updated

[ January 16, 2019   //   ]

Danish-owned forwarder DSV says that it has made an indicative and private proposal to acquire fellow Swiss-headquartered Panalpina. It has offered 1.58 DSV shares and CHF 55 in cash for each Panalpina share which, based on closing prices on 11 January, is worth CHF 170 per share, which it says is a of 24% to Panalpina’s closing share price of CHF 137.50 on that date.
It said it had not yet received a response to its proposal from Panalpina’s board of directors.
DSV says that the combined company “would create a leading global transport and logistics company with significant growth opportunities” would be “a unique opportunity for both companies and their respective stakeholders including shareholders, employees, customers and suppliers.
The combined business would have expected revenues of more than DKK 110bn and EBITDA of more than DKK 7bn on a pro-forma 2018 basis, excluding any synergy benefits, adds DSV.
It is not the Danish giant’s first attempt to acquire a major competitor. Late last year it made a failed bid to acquire Ceva Logistics.
Equity analyst David Kerstens said that there had been increasing pressure from Panalpina’s shareholders to consider takeover talks, following the decision in November by chairman Peter Ulber not yo stand for re-election at next year’s AGM. The Ernest Goehner foundation controls a 45.9% stake in the company, but patience is running out with Panalpina’s lacklustre performance compared with the rest of the freight sector, said Kerstens.
Other firms including Kuehne+Nagel might also be interested in buying Panalpina, but DSV was probably best-positioned, he added.

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