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Wincanton PLC on Friday threw its weight behind the £762 million bid from GXO Logistics Inc, having previously accepted a rival offer. On Thursday, GXO announced an offer of 605 pence per share in cash for the Wiltshire, England-based company, and said two major shareholders supported its offer. Shares in Wincanton were down 0.2% to 623.00p each in London on Friday, though still well above GXO’s offer, suggesting some hope among investors for another counter bid. The stock has more than doubled over the past 12 months. The offer from Greenwich, Connecticut-based GXO trumped 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 on Thursday had said eceived 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 had support for its offer from shareholders representing 34% of Wincanton’s equity. In its statement on Friday, Wincanton said it was pleased that the public offer process, triggered by their recommendation of CEVA’s offer is ‘maximising value and delivering a significant premium to Wincanton shareholders’. As a result, Wincanton recommended ‘unanimously’ the GXO offer and, withdrew its recommendation of the bid by CEVA. Chair Sir Martin Read said he was ‘pleased that GXO recognises the very significant value inherent in this business’. Like Wincanton, GXO is a logistics provider. It is listed on the New York Stock Exchange with a market capitalisation of $6.12 billion. Its shares closed down 2.0% at $51.30 in New York on Wednesday. In 2022, GXO purchased Clipper Logistics in the UK in a deal worth £1 billion. Consequently, its offer for Wincanton could face competition hurdles. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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