Swiss-based transport and logistics company Panalpina has confirmed media reports that it is in discussions with Kuwaiti counterpart Agility Group on “potential strategic opportunities” with regard to their respective logistics businesses.
The discussions between the two companies are at a preliminary stage, said Panalpina in a brief statement dated February 15.
It added that Panalpina’s board of directors continues to review the approach by DSV in conjunction with its professional advisers and that further announcements will be made as appropriate.
Last January 16, Panalpina announced receiving “an unsolicited, non-binding proposal from DSV to acquire the company at a price of CHF 170 per share, comprising a mix of cash and DSV shares.”
Danish supply chain company DSV confirmed making such a proposal to acquire Panalpina for over US$4.1 billion. In a written statement on the same date, DSV said it made the indicative and private acquisition proposal to Panalpina’s board of directors, seen as a bid to move closer to the world’s top three freight transport companies.
DSV, the world’s fifth largest freight forwarder, has been expanding rapidly in recent years through a number of acquisitions. Last year, DSV failed in its attempt to buy Ceva Logistics.
Reports said Panalpina is seeking a tie-up with Agility as it tries to repulse a takeover by DSV. Reports further said that negotiations about combining Panalpina and Agility are progressing, and that a transaction is backed by the Ernst Goehner Foundation, Panalpina’s biggest shareholder that earlier this month expressed opposition to the DSV offer.
In a statement dated February 4, the Ernst Goehner Foundation, which represents about 46% of the total share capital of Panalpina, said that it does not support the DSV proposal and that it “supports pursuing an independent growth strategy that includes M&A.”
However, several minority shareholders in Panalpina are said to support the DSV offer.
