CMA CGM Grows Its Logistics Presence
Under the deal, CMA CGM has committed to subscribe for mandatory convertible securities of CEVA in an estimated amount between CHF 380 and 450 million (approximately USD 391-463 million).
According to the French liner, these securities will be convertible into CEVA common shares subject to obtaining all required regulatory approvals.
The equity investment will take place in connection with CEVA’s planned initial public offering on the SIX Swiss Exchange, announced on April 20, 2018, and remains conditioned upon its successful completion.
“With this proposed investment in CEVA, CMA CGM makes a significant move, in line with its development strategy. CEVA is a major player in the logistics business, which is closely related to the shipping industry. Together, the two companies will also explore possible cooperations allowing us to propose an ever more differentiated and qualitative offering while integrating services beyond maritime transport,“ Rodolphe Saadé, Chairman and CEO of CMA CGM, said.
Following this equity investment, CMA CGM will nominate two members of CEVA’s Board of Directors. The two companies have agreed to explore potential opportunities to work together towards the development of joint commercial offerings, according to terms that will be defined in the coming months.
The closing of the transaction remains subject to the completion of CEVA’s IPO as well as to the approval from regulatory authorities.
CEVA is the 5th player in contract logistics, and the 10th in the world in freight forwarding, with a strong footprint in Asia. It has temporary/agency workers in 160 countries and manages more than 9 million sqm. of warehouses across the globe. CEVA posted revenues of over USD 7 billion in 2017.
Source: World Maritime News
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