Clipper Logistics PLC - Leeds, England-based e-fulfilment services provider - Agrees to takeover by Connecticut, US-based warehousing and distribution firm GXO Logistics Inc for GBP965 million in cash and shares.
The new offer values each Clipper share at 920 pence each, comprising 690 per clipper share in cash, and 0.0359 new GXO shares equivalent to 230p.
The acquisition reflects an 18% premium to the company closing price of 777p on February 18, the day before both companies agreed to a deal.
Acquisition is conditional on gaining at least 75% shareholder approval at an upcoming general and court meeting, clearance from the UK Competition & Markets Authority and the Polish Office of Competition and Consumer Protection, and the scheme being sanctioned by the High Court of Justice in England & Wales.
The acquisition has a long stop date of November 28, and GXO Logistics currently has irrevocable undertakings from 23% of Clipper's issued share capital to accept the offer.
"The offer from GXO presents a compelling opportunity for us to continue to grow our service offering, by partnering with a global, technology-driven logistics company. We have accomplished so much, and I am confident the combination of our two companies means the best days are ahead. In recommending this offer to shareholders, the directors of Clipper believe it is in the best interests of all the company's stakeholders," says Executive Chair Steve Parkin.
"The offer from GXO gives shareholders the opportunity to receive a high portion of cash at a significant premium to the prevailing share price and a premium to the all-time closing high, whilst also being given the opportunity to benefit in the potential future upside in the combined group through the element of share consideration," Parkin added.
Current stock price: 875.00 pence, market capitalisation of GBP896.6 million
12-month change: up 55%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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