Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Beleaguered Panalpina Gets An Unsolicited Takeover Offer

CEVA’s Fair & Reasonable Offer; But Please Don't Tender

Largest Panalpina Shareholder to Other Shareholders: Get Stuffed

Quiddity Advisors

Event-Driven

<p>On October 11<sup>th</sup>, Swiss-based global supply chain management company <strong><a href="https://www.smartkarma.com/entities/27764" target="_blank" data-smartkarma-citation="entities:27764:1">Ceva Logistics AG (CEVA SW)</a> </strong> rejected an unsolicited, non-binding offer from Danish freight-forwarding group <strong><a href="https://www.smartkarma.com/entities/22343" target="_blank" data-smartkarma-citation="entities:22343:1">DSV A/S (DSV DC)</a></strong> to acquire the company at a price of CHF 27.75/cash, a 51% premium to its undisturbed price of CHF 18.42. CEVA board unanimously <a href="https://ir.cevalogistics.com/websites/ceva/English/2999/news.html?newsID=1725491" target="_blank">rejected</a> the proposal having concluded it “<em>significantly undervalued the prospects of CEVA Logistics as an independent company</em>”.</p>
<p>Six days later, CEVA announced that its strategic partner, <strong><a href="https://www.smartkarma.com/entities/23994" target="_blank" data-smartkarma-citation="entities:23994:1">CMA CGM SA (144898Z FP)</a></strong>, had <a href="https://ir.cevalogistics.com/websites/ceva/English/2999/news.html?newsID=1726829" target="_blank">increased its stake to 33%</a> (from 25%) in CEVA, and had also entered into a derivative transaction giving CMA CGM an additional economic exposure of 4.56% in CEVA.</p>
<div>A further six days out (October 23<sup>rd</sup>) CEVA confirmed receipt of a <a href="https://ir.cevalogistics.com/websites/ceva/English/2999/news.html?newsID=1728451" target="_blank">non-binding letter of interest</a> from DSV, with an indicative price of CHF 30.00/share. This was also rejected, with DSV adding that, "<em>based on the unwillingness of the Board of Directors of CEVA to engage directly with DSV at the price per share offered, we have decided not to pursue an acquisition of CEVA".</em>
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<div>Two days later, CMA entered into a <a href="http://www.cma-cgm.com/news/2265/ceva-logistics-and-cma-cgm-broaden-their-strategic-partnership-and-sign-a-new-relationship-agreement" target="_blank">new relationship agreement</a> with CEVA, such that CMA CGM will transfer its freight management activities to CEVA Logistics (subject to anti-trust approval) and announced a <strong>voluntary public tender offer at CHF 30/share</strong> - despite earlier being on record it had no plans to launch a full takeover.</div>
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<div>CEVA's <a href="https://ir.cevalogistics.com/websites/ceva/English/2999/news.html?newsID=1733723" target="_blank">9M18 results</a> announced earlier this week essentially show the company burning through US$1mn/day. CEVA announced that intensifying its cooperation with CMA should help meet its medium-term targets. If CMA is going to continue funding CEVA out of its operational malaise (only cashflow positive from ops thrice in the past ten years, the last in FY15; the company has never generated a profit), it probably would be better served taking the company private.</div>
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<div>Given earnings uncertainty, investors can opt for the short-term guarantee and take the CHF 30/share. There is no minimum condition attached to this public offer. CMA will formally publish its offer via a “pre-announcement” to be made by 30 November at the latest. The cash consideration is expected 1Q19/ early 2Q19.</div>

On October 11th, Swiss-based global supply chain management company Ceva Logistics AG (CEVA SW)  rejected an unsolicited, non-binding offer from Danish freight-forwarding group DSV A/S (DSV DC) to acquire the company at a price of CHF 27.75/cash, a 51% premium to its undisturbed price of CHF 18.42. CEVA board unanimously rejected the proposal having concluded it “significantly undervalued the prospects of CEVA Logistics as an independent company”.
Six days later, CEVA announced that its strategic partner, CMA CGM SA (144898Z FP), had increased its stake to 33% (from 25%) in CEVA, and had also entered into a derivative transaction giving CMA CGM an additional economic exposure of 4.56% in CEVA.
A further six days out (October 23rd) CEVA confirmed receipt of a non-binding letter of interest from DSV, with an indicative price of CHF 30.00/share. This was also rejected, with DSV adding that, "based on the unwillingness of the Board of Directors of CEVA to engage directly with DSV at the price per share offered, we have decided not to pursue an acquisition of CEVA".


Two days later, CMA entered into a new relationship agreement with CEVA, such that CMA CGM will transfer its freight management activities to CEVA Logistics (subject to anti-trust approval) and announced a voluntary public tender offer at CHF 30/share - despite earlier being on record it had no plans to launch a full takeover.

CEVA's 9M18 results announced earlier this week essentially show the company burning through US$1mn/day. CEVA announced that intensifying its cooperation with CMA should help meet its medium-term targets. If CMA is going to continue funding CEVA out of its operational malaise (only cashflow positive from ops thrice in the past ten years, the last in FY15; the company has never generated a profit), it probably would be better served taking the company private.

Given earnings uncertainty, investors can opt for the short-term guarantee and take the CHF 30/share. There is no minimum condition attached to this public offer. CMA will formally publish its offer via a “pre-announcement” to be made by 30 November at the latest. The cash consideration is expected 1Q19/ early 2Q19.

CEVA's Days Of Independence Appear Numbered