French container transportation and shipping company CMA CGM said that by strengthening the partnership with the global logistics supply chain company CEVA Logistics, it is actively engaging its logistics strategy.
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group said: "Our ambitious development project for CEVA was approved by its Board of Directors. Subject to approval from the regulatory authorities, this project will accelerate CEVA’s transformation, making it a more efficient logistics leader, to the benefit of its customers, employees and shareholders."
"Via a takeover bid, we hope to obtain the majority of CEVA's share capital and unleash its full potential,” he added.
Meanwhile, CEVA Logistics has strengthened its strategic partnership with CMA CGM's equity stake increased to 33%.
As CEVA's major shareholder since the company's IPO in May 2018, CMA CGM signed a new cooperation agreement with CEVA on 24 October to strengthen their development project, said a stock exchange announcement from the French shipping line.
All CEVA shareholders will benefit from the substantial value creation expected from this project, as CEVA’s shares should remain listed. This agreement will permit CEVA to accelerate its transformation via a strengthened development project, it said.
This agreement also provides for the lifting of the tag-along obligation and the launching of a takeover bid by CMA CGM. At CHF 30 per CEVA Logistics share, this bid is aimed at shareholders wishing to sell their shares and not wait for the value creation resulting from the plan proposed by CMA CGM, which should be announced no later than 30 November 2018.
The effective completion of the takeover bid is subject to regulatory approval.