Wincanton’s Share Price Rallied 11.6% on Final, Competing Offers

The Wincanton plc (LON: WIN) share price rallied 11.6% after announcing that it had agreed to a final and improved cash offer for all its outstanding shares with CEVA Logistics UK Rose Limited (Bidco), a wholly-owned subsidiary of CEVA Logistics S.A. (CEVA). CEVA’s final offer valued each Wincanton share at 480p. 

This transaction, referred to as the Acquisition, is to be carried out through a scheme of arrangement as detailed in the Companies Act 2006. The document outlining the scheme for the Acquisition was published and shared with Wincanton shareholders on February 15, 2024. 

CEVA Logistics UK Rose Limited was delighted to announce an agreement with Wincanton's board on a revised and final cash offer for all Wincanton shares, now termed the “Revised and Final Offer.” 

Under this revised offer, shareholders of Wincanton will receive 480 pence in cash for each share involved in the scheme, termed the “Revised and Final Offer Price.” The price evaluates Wincanton’s total share capital at about £604.7 million on a fully diluted basis, placing the company's enterprise value at around £802.7 million.

The Revised and Final Offer Price marks a roughly 6.67% increase from the initial 450 pence offer per share. It offers a premium over various historical price points of Wincanton shares before the offer period commenced on January 18, 2024.

Notably, this includes a 62% premium over the closing price on January 18, a 57% premium over the 30-business day volume-weighted average price, a 70% premium over the 90-business day average, and a 94% premium over the 12-month average. 

The final offer price is set and will only be raised if a third party intends to bid for Wincanton or with regulatory approval. The cash necessary to fulfil this revised offer to Wincanton shareholders will be drawn from CMA CGM's existing cash reserves.

Wincanton's Board has been approached by an entity considering a bid for the company. It is adhering to its responsibilities under Rule 21.3 of the Takeover Code by providing necessary due diligence information to facilitate the evaluation of a potential offer.

This interested party still needs to submit a concrete proposal or outline any specific offer terms or pricing to Wincanton's Board. Investors reacted positively to the possibility of a competing offer. 

Wincanton share price. 

The Wincanton share price rallied 11.61% to trade at 502.0p from Friday’s closing price of 449.8p.