By Hailey Desormeaux / www.americanshipper.com / April 20th, 2018
The French container carrier and shipping company announced Friday that it had reached a deal to acquire an equity stake of nearly 25 percent of the global logistics company.
CMA CGM announced Friday that it has struck an agreement with CEVA Logistics AG to acquire a nearly 25 percent equity stake in the global logistics company.
CMA CGM has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between CHF 380 million and CHF 450 million (U.S. $390 million to $462 million), which will be convertible into CEVA common shares, subject to required regulatory approvals.
“This equity investment takes place in connection with CEVA’s planned initial public offering on the SIX Swiss Exchange, announced on 20th April 2018, and remains conditioned upon its successful completion,” CMA CGM said.
CEVA revealed earlier this month it would seek to raise CHF 1.3 billion in an initial public offering on the SIX Swiss Exchange, which would see its headquarters moved from Hoofdorp, Netherlands, to Baar, Switzerland.
CMA CGM and CEVA plan to explore potential opportunities to work together toward the development of joint commercial offerings, according to terms that will be defined in the coming months, CMA CGM said.
Following the equity investment, CMA CGM said it will nominate two members of CEVA’s board of directors.
CEVA has more than 56,000 employees and temporary/agency workers in 160 countries across the globe. It is the No. 5 player in contract logistics and comes in 10th place for freight forwarding.
CEVA sank deeper into the red in 2017, tallying up a loss of $197 million, compared with a $159 million loss the prior year, despite revenues climbing 5.2 percent to $7 billion amid higher airfreight and ocean freight volumes.
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