New step in CMA CGM and CEVA Logistics’ strategic partnership

Today, CEVA Logistics announced its new strategic plan to accelerate the value creation for all stakeholders. CMA CGM fully supports this new plan. All CEVA shareholders will have the opportunity to benefit from the substantial value creation expected from this new strategic partnership.

For the shareholders wishing nevertheless to exit their investment in CEVA Logistics, CMA CGM has made today a pre-announcement of a public tender offer for CEVA Logistics. The offer entails  a price of CHF 30.00 for each registered share in CEVA Logistics (ISIN CH0413237394).

This corresponds to a premium of 46 percent with respect to the volume-weighted average share price of CEVA Logistics shares on the SIX Swiss Exchange over the 60 trading days prior to 1 October 2018. The new strategic partnership announced by CEVA Logistics will use three key levers to accelerate top-line growth and improve profitability, thus bridging the current gap vis-a-vis key peers:

1. Accelerating CEVA’s transformation through commercial initiatives and cross-selling, a new and simplified matrix organization and strengthened management team as well as a stronger focus on profitability improvements and an upgrade and standardization of processes and IT architecture. To this end, CEVA Logistics will benefit from CMA CGM‘s managerial and commercial expertise as well as a long-term and ambitious shareholder support

2. Strengthening CEVA’s Freight Management business through the acquisition of CMA CGM’s freight management activities (CCLog), following the settlement of the public tender offer

3. Leveraging CMA CGM ocean carrier platform to generate cost efficiencies, in terms of back-office function
The CMA CGM & CEVA Logistics strengthened partnership will be based on an arm’s length business relationship between the two companies, allowing them to effectively and efficiently deliver end-to-end supply chain solutions to their clients on competitive terms.

The completion of the public tender offer is subject to regulatory approvals. CMA CGM has been CEVA Logistics’ reference shareholder since its listing on the SIX stock exchange in May 2018. At present, CMA CGM owns a non-controlling 33 stake of the registered shares of CEVA Logistics.

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