COPENHAGEN/BASEL: April 01, 2019. Panalpina is to become ‘DSV Panalpina’ if a proposed share exchange valued at CHF4.6 billion between the company and DSV is successful.
The result would be a transport and logistics entity employing over 60,000 people in 90 countries producing annual revenue of approximately US$17.7 billion.
Shareholders holding 69.9 percent of Panalpina shares already support the stock swap including the Ernst Göhner Foundation (EGF) with 46 percent.
Thomas Gutzwiller, chairman of EGF’s independent Panalpina Committee commented: “Our Board of Trustees unanimously concluded that the proposed combination under the umbrella of DSV provides the best opportunities for Panalpina to meet future market challenges from a position of strength and to create value for all stakeholders.
“As an entrepreneurial foundation with a philanthropic purpose, we feel very comfortable with the announced solution both in terms of quality and security as well as earnings potential. In this spirit of continuity Ernst Göhner Foundation looks forward to supporting DSV Panalpina as [its] largest shareholder," he continued.
Both companies expect the merger to be completed by Q4 2019 subject to the acceptance by 80 percent of all publicly held Panalpina shares; a receipt of all necessary regulatory approvals; approval of a capital increase at a forthcoming DSV AGM; approval of a listing prospectus and admittance of the new DSV shares for trading at NASDAQ Copenhagen; and effectiveness of a US Registration Statement.
Commenting on the announcement Panalpina board chairman Peter Ulber said: "In the course of the past weeks, Panalpina’s board of directors and management has been exploring different strategic initiatives and held discussions with DSV about a potential combination.
“The board of director’s assessment is that the updated proposal of DSV is very attractive. It is recognizing the quality of Panalpina’s employees, the company’s strong position as one of the world’s leading providers of supply chain solutions, and its special competencies and know-how in air and ocean freight.”
Ulber added discussions with Agility Logistics have now ended following board acceptance of the DSV offer.
DSV chairman Kurt Larsen (pictured) said combining the two companies was a “great match on all parameters. Panalpina is a great company and we’re very excited by the possibility to join forces and to welcome Panalpina’s talented staff.”
In October last year CEVA Logistics rejected an increased takeover offer of CHF30.00 a share from DSV following an earlier bid that would have valued the Swiss company at US$1.55 billion.
