Wincanton’s Share Price Surged 46.6% on a £764.9M Cash Offer

The Wincanton plc (LON: WIN) share price surged 46.6% after announcing that it had agreed to be acquired by CEVA Logistics UK Rose Limited (Bidco), valuing it at £764.9 million. The company’s board has approved the cash offer, recommending that shareholders approve the deal.

CEVA Logistics has agreed to pay 450 pence in cash for each Wincanton share, translating into a premium of 52% to the Closing Price of each Wincanton Share of 297 pence on the Latest Practicable Date. 

The fusion of CEVA and Wincanton is expected to yield several benefits. It will bolster CEVA's contract logistics services in the UK and Ireland, establishing Wincanton as a pivotal growth and development platform. CEVA can leverage Wincanton's established relationships with leading UK grocers and retailers, diversifying its clientele.

Backed by a well-resourced and entrepreneurial group, CEVA aims to provide comprehensive logistics solutions globally, catering to small and large-scale clients, fostering growth and innovation. The merger is anticipated to generate cost synergies, amalgamate best practices, and optimally utilise the combined talent pool.

The directors of Wincanton, advised by HSBC on the financial aspects of the acquisition, deem the terms favourable. HSBC’s independent financial advice to the directors aligns with Rule 3 of the Code. Consequently, the Wincanton directors are united in recommending that their shareholders approve the acquisition proposal.

Regarding shareholding commitments, Wincanton directors holding shares have pledged to support the acquisition. They represent about 0.11% of Wincanton's share capital. Moreover, Bidco has secured letters of intent from shareholders controlling approximately 6.97% of Wincanton’s shares, further backing the acquisition.

Wincanton, a key supply chain partner in the UK, is known for its strong customer relationships and innovative approach to logistics. Despite confidence in its standalone potential, the Wincanton Board acknowledges the attractiveness of CEVA's offer amidst current economic uncertainties. 

The offer price of 450 pence per share, following negotiations and rejections of previous lower proposals by CMA CGM, is unanimously recommended by the Wincanton Board, considering it a fair reflection of the company’s value and prospects.

Wincanton share price. 

The Wincanton share price surged 46.58% to trade at 438.0p from Thursday’s closing price of 298.8p.