Home Money Wincanton shares soar on rival takeover approach as CEVA Logistics ups bid

Wincanton shares soar on rival takeover approach as CEVA Logistics ups bid

by Elijah
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Delivery giant: Founded almost a century ago, Wincanton operates around 8,500 vehicles delivering a wide range of consumer goods across the UK.
  • Wincanton’s clients include Primark, Ikea, Sainsbury’s and BAE Systems.
  • CEVA Logistics has submitted a revised takeover bid of £4.80 per share for Wincanton

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A bidding war for Wincanton is on the cards after the logistics provider revealed it had received a separate takeover proposal.

Wincanton shares soared on Monday when it told shareholders that the group had provided due diligence information to help the unnamed party decide whether to make a formal takeover offer.

However, company bosses are unanimously advising shareholders to support a revised £4.80 per share offer from CEVA Logistics, a subsidiary of French shipping giant CMA CGM.

Delivery giant: Founded almost a century ago, Wincanton operates around 8,500 vehicles delivering a wide range of consumer goods across the UK.

Delivery giant: Founded almost a century ago, Wincanton operates around 8,500 vehicles delivering a wide range of consumer goods across the UK.

wincanton stock jumped 11.25 per cent to 499.5p on Monday morning after the announcement, making them the biggest riser on the FTSE All-Share index.

The latest proposal values ​​Wincanton at an enterprise value of £802.7 million, an increase of £37.8 million on CEVA’s previous offer, which the two companies agreed last month.

When the previous deal was revealed, CEVA said it was a “unique opportunity” to expand across the UK and gain “complementary food and consumer expertise”.

Founded almost a century ago, Wincanton operates around 8,500 vehicles delivering a wide range of consumer goods across the UK, including food, fuel, industrial equipment and construction materials.

Its clients include some of Britain’s leading retailers including Primark, Ikea, Asda and Sainsbury’s, as well as manufacturers such as BAE Systems, British Sugar and Tata Chemicals.

In its most recent trading update, the Wiltshire-based group reported that revenue in the quarter to December rose 1.3 per cent despite difficult market conditions.

Wincanton told investors: “There can be no certainty that the potential competing bidder will make an offer for the company, nor of the terms on which the offer might be made.”

“Shareholders are therefore advised not to take any action at this time regarding the approach of the potential competing bidder.”

CMA-CGM is one of the largest maritime operators in the world, with around 155,000 employees, a presence in more than 160 countries and a turnover of $47 billion last year.

Its proposed takeover of Wincanton comes amid a wave of foreign companies taking advantage of discounted valuations and a weaker pound to snap up London-listed companies on the cheap.

Companies bought by foreign owners in recent years include Dechra Pharmaceuticals, fashion brand Ted Baker, supermarket chain Morrisons and Hotel Chocolat, which was acquired by confectionery giant Mars.

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