(Alliance News) - GXO Logistics Inc on Thursday declared imminent victory in its last-minute grab for Wincanton PLC, saying two major shareholders support its rival takeover offer.
GXO offered 605 pence per share in cash for Wincanton, valuing the Wiltshire, England-based company at GBP762 million, or GBP764 million on an enterprise value basis, including debt.
Wincanton shares surged 19% to 608.00 pence on Thursday morning in London. The UK logistics provider's stock has nearly doubled in the past 12 months, rising by 97%.
The offer from Greenwich, Connecticut-based GXO trumps by more than a quarter a previously agreed takeover offer from CEVA Logistics UK Rose Ltd, a subsidiary of Marseilles, France-based shipping and logistics company CMA CGM.
CEVA recently had increased its own offer for Wincanton to 480p per share from its original bid of 450p, which was made in January.
GXO said has received irrevocable undertakings from Wellcome Trust Ltd and Polar Capital Funds PLC to accept its offer for Wincanton. The undertakings would cease only in the case of a competing bid of more than 695p per share.
As a result, GXO said it has support for its offer from shareholders representing 34% of Wincanton's equity.
Wincanton issued no immediate response to the GXO announcement on Thursday. GXO asserted that it "expects that the Wincanton board will recommend the acquisition in due course".
Like Wincanton, GXO is a logistics provider. It is listed on the New York Stock Exchange with a market capitalisation of USD6.12 billion. Its shares closed down 2.0% at USD51.30 in New York on Wednesday.
In 2022, GXO purchased Clipper Logistics in the UK in a deal worth GBP1 billion. Consequently, its offer for Wincanton could face competition hurdles.
By Tom Waite, Alliance News editor
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