DSV Panalpina to acquire Agility’s Global Integrated Logistics Business

Published: Saturday, May 29, 2021

DUBAI: Leading global logistics firm DSV Panalpina will acquire Agility’s Global Integrated Logistics Business (GIL) under an all-share agreement deal between parties set to be concluded in the third quarter of 2021.

With which, Agility will become the second largest shareholder in DSV Panalpina with an approximate 8% stake in the combined company.

The all-share transaction between the firms sets the following: DSV will issue 19,304,348 shares, representing approximately 8.0% of all post-transaction outstanding shares of DSV. Based on the DSV share closing price of DKK 1,299.5, and an exchange rate of DKK 1.00 = USD 0.163 and KWD = 0.049, the all-share transaction has an implied equity value of GIL of USD 4.1 billion (KWD 1.2 billion).

The combination of DSV and GIL will fortify DSV’s position as a leading global transport and logistics company with a combined pro forma revenue of approximately USD 22 billion and a combined workforce of more than 70,000 employees.

“This deal creates significant shareholder value and marks a new milestone in Agility’s journey. Agility remains committed to the supply chain industry, and will become the second largest shareholder in one of the fastest-growing and most profitable logistics companies in the world,” said Tarek Sultan, Agility’s Vice-Chairman.

He added: “Agility will be exploring opportunities between DSV and its other businesses, with promising areas of future cooperation potentially including Agility’s Logistics Parks business, Shipa group of companies, and technology ventures. Agility will remain an emerging markets leader, investor in emerging technologies, and champion of sustainable business.”

Jens Bjørn Andersen, Group CEO of DSV, said: “Agility’s Global Integrated Logistics business and DSV are an excellent match, and we are proud that we can announce our agreement to unite. The combination of our two global networks will provide us with the opportunity to offer our customers an even higher service level.”

“GIL’s global network, industry competencies and strong market position in APAC and the Middle East complement DSV’s network well and will support our long-term value creation ambitions. Our two groups of companies already share a culture of entrepreneurship and local ownership, and we look forward to welcoming GIL’s talented staff to DSV,” he added.

At completion, DSV will acquire 100% of GIL in consideration for issuing 19,304,348 new shares of 1 DKK/share to Agility. This will represent approximately [8.0] % of all post-transaction outstanding shares of DSV. The share issue will be according to existing authorisations given to DSV’s Board of Directors.