CEVA expects conversion of CMA CGM's securities no later than August 13
NETHERLAND-HEADQUARTERED asset-light third-party logistics provider CEVA Logistics has announced that French shipping giant CMA CGM is expected to convert the CHF378
NETHERLAND-HEADQUARTERED asset-light third-party logistics provider CEVA Logistics has announced that French shipping giant CMA CGM is expected to convert the CHF378.95 million (US$382 million) of CEVA mandatory convertible securities it holds into registered ordinary shares to become a 24.99 per cent shareholder in company no later than on August 13, 2018.
Whilst CMA CGM has obtained all required regulatory approvals, CEVA and CMA CGM have agreed to postpone the conversion to give the French shipping company more time to work through certain technical legal aspects.
'These are due to the fact that CEVA's non-executive board member, Rodolphe Saade, had, in late June and early July 2018, when he was still a non-voting board member, purchased a total of 27,500 CEVA shares which will now need to be aggregated with CMA CGM's holdings as Mr. Saade has become, in the meantime, a joint control holder of CMA CGM.
'As a result of such aggregation, their combined ownership in CEVA technically surpasses the 33.33 per cent mandatory takeover threshold before the shares issued upon conversion are formally registered in the Commercial Register. A ruling sought from the Swiss Takeover Panel will confirm the non-applicability of the takeover rule under the circumstances,' according to a press statement.
Following conversion and registration of the newly created shares, CMA CGM's and Rodolphe Saade's combined shareholdings will amount to approximately 25.04 per cent of the company's registered capital.
As part of its investment, CMA CGM has entered into a lock-up agreement for one year following the CEVA IPO and has agreed not to increase its shareholding in CEVA for six months post IPO. The latter provision did not apply to Mr Saade at the time of his purchase. He will, however, going forward, adhere to the standstill undertaking.
'CEVA and CMA CGM, the third largest container shipping group in the world, will work together to expand their commercial cooperation and to develop complementary services, which address the increasing customer need for integrated end-to-end solutions. Both companies believe that the arms-length partnership could create significant value to customers and would be mutually beneficial to both companies,' the press statement said.