CMA CGM has signed a new relationship agreement with CEVA Logistics to reinforce the industrial cooperation between the two companies.
With the French company’s commitment to keep the CEVA shares listed, all CEVA shareholders will have the opportunity to benefit from the substantial value creation expected from this cooperation, said CMA CGM in a statement.
Rodolphe Saadé, CEO of CMA CGM said: “We are convinced of CEVA Logistics’ potential. This industrial cooperation will make it possible to accelerate its required transformation and to make it a more profitable and efficient leader in logistics for the benefit of its clients, its employees and its shareholders.”
The industrial cooperation has received the full support of the logistics firm’s board of directors and management as it believes the agreement preserves the company’s assets and identity while it is in the best interest of the company.
The new agreement will see CMA CGM transfer its freight management activities to CEVA in order to strengthen the company and create economies of scale.
The shipping line hopes to help its new partner achieve its recovery plan swiftly and efficiently and aims to generate new commercial opportunities for CEVA due to its international network.
The carrier will also support additional investments that will implement CEVA’s digital and IT transformation with the aim of encouraging its commercial success and operational efficiency.
Since its listing on the SIX stock exchange in May 2018, CMA CGM has been CEVA’s reference shareholder and the new agreement aims to make it possible for the logistics company to accelerate its transformation.
According to the Marseilles-based company, the cooperation will significantly improve the financial performance of CEVA and it has committed to maintain the company’s share listing at the SIX Swiss Exchange and to have a significant free float.
Recently, the carrier increased its stake in CEVA by 8.01% to 33% which brought it very close to the one-third shareholding that means, under Swiss stock exchange rules, it would have to make a mandatory takeover offer.
The new agreement saw the removal of the drag along cause from the previous arrangement and a voluntary public tender offer from CMA CGM for a value of 30 CHF (US$29.95) per share in cash.
The voluntary public tender offer will be pre-announced by November 30, 2018 at the latest and is for those who wish to sell their shares despite the potential of the industrial cooperation with CMA CGM.