DSV, Panalpina join forces
DSV and Panalpina have agreed to join forces, with the Swiss firm accepting an offer of 4.6 billion Swiss francs (CHF).
The public exchange offer to Panalpina shareholders has the support of those representing 69.9% of shares, including Ernst Goehner Foundation, Cevian and Artisan.
If the exchange offer is successful, DSV and Panalpina will become one of the world’s largest transport and logistics companies with combined revenue of 118 billion Danish krone and a combined workforce of more than 60,000 employees.
Following completion, DSV is proposing to shareholders that the company name will be changed to DSV Panalpina A/S to reflect the long history of both companies.
Kurt Larsen, chairman of the board of DSV says, “Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry. It’s 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.”
Peter Ulber, chairman of the board of Panalpina says that the board and management had assessed different strategic initiatives, saying: “The board of directors’ assessment is that the updated proposal of DSV is very attractive. We are now looking forward to joining forces with DSV and contributing to creating, one of the world’s largest transport and logistics companies.”
Ernst Goehner Foundation, Panalpina’s largest shareholder with a 46% stake is expected to become the largest shareholder of DSV, holding 11% of the issued share capital.
DSV has recommended to its shareholders that a candidate proposed by the foundation will be elected to the DSV board of directors.
The foundation has undertaken not to sell or dispose of its DSV shares for a period of 24 months following settlement of the public exchange offer, save for limited participation in share buy-back programs.
Thomas Gutzwiller, member of the board of trustees and chairman of the independent Panalpina committee of Ernst Goehner Foundation says, “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.”