Shares of Clipper Logistics Plc (LON: CLG) are up nearly 15% on Monday after the retail logistics company said a U.S. peer is interested in buying it for £942.6 million ($1.3 billion) in cash and stock.
What we know so far about the possible takeover
GXO Logistics Inc (NYSE: GXO) wants to takeover the British company for 920 pence per share, confirmed a press release this morning. The key terms of the agreement have been agreed upon, but a firm offer is yet to be made.
The Connecticut-headquartered firm is proposing 690 pence in cash and the remaining in GXO shares. However, it is leaving Clipper shareholders with authority to adjust the proportions of cash and stock as they please. The agreement represents a 49% premium on where CLG closed the regular session on Friday.
The board intends to recommend the offer to shareholders if a firm offer is received. CEO Tony Mannix, Executive Chairman Steve Parkin, and CFO David Hodkin have already irrevocably endorsed the bid. The three executives with other notable shareholders have a 23.31% stake in Clipper Logistics.
Why hasn’t GXO made a firm offer yet?
GXO needs to meet the customary pre-conditions before it can make a firm offer to acquire the British firm. In its statement regarding the possible offer, the American global contract logistics company said:
It’s a compelling strategic combination which significantly increased the opportunities for both businesses in the high-growth eCommerce/e-fulfilment areas, creating significant value for all stakeholders.
GXO is a pure-play logistics company that spun off from XPO Logistics in August 2021. The stock is down over 20% from its high in mid-November.