Agility initiates preliminary talks for tie-up with Panalpina
Panalpina’s board of directors has confirmed that they are in the preliminary stage of discussion with Kuwait-based Agility Group on strategic opportunities with regard to their respective logistics businesses.
Panalpina, a Switzerland-based holding company engaged in the transportation sector, is in talks with Agility, but is still reviewing an approach by Denmark’s DSV, the company said in a statement.
Negotiations about combining Panalpina and Agility are progressing and a transaction is backed by the Ernst Goehner Foundation, Panalpina’s biggest shareholder. The foundation, which owns 45.9% of Panalpina, rebuffed DSV’s unsolicited US$ 4.1bn offer this month.
Panalpina Chairman, Peter Ulber, and Vice Chairman, Beat Walti, serve not only on the Panalpina board but also on the board of Ernst Goehner. The foundation said that it fully supports the company in implementing its strategy and realising its full potential which includes taking an active role in the consolidation of the industry.
Stefan Karlen, chief executive officer (CEO), Panalpina said that the company would be looking to grow organically and inorganically through acquisitions.
DSV’s approach to Panalpina comes just months after it failed in an attempt to buy Switzerland’s CEVA Logistics. DSV’s Jens Bjorn Andersen, Chief Executive, said that he remains in pursuit of a deal, and has faced hurdles in Switzerland as he seeks to grow DSV’s footprint, having failed last year in US$ 1.55bn bid for CEVA.
According to its fiduciary duties, the Board of Directors of Panalpina continues to review the approach by DSV in conjunction with its professional advisers, the company affirmed in a press communiqué.