Christian Salvesen receives two acquisition offers
Indicative offer proposals are subject to a number of pre-conditions
Christian Salvesen has released a statement that its Board has noted the recent movement in its share price. In response to this, the Board confirms that it has received approaches from two parties which may or may not lead to a recommended offer for the Company. The indicative offer proposals received by the Board are subject to a number of pre-conditions.
The Board is currently continuing discussions and will provide an update to its shareholders in due course. The Company stated, as is usual in such instances, that there can be no certainty that a formal offer for the Company will be forthcoming or as to the terms on which any offer might be made.
Following a recent dip in its share price, a sharp increase (of almost 30.0% at one stage) was seen this morning. The Company, with a market capitalisation of some GBP 159.2 million (rising to around GBP 176.0 million after share activity this morning), has been the subject of takeover and merger speculation and approaches in recent years, most notably when discussions with TDG failed to result in a deal in late 2004.
Salvesen has faced difficult trading conditions for a number of years and has initiated a programme of restructuring to improve efficiency across the Group, particularly across its UK and Spanish transport businesses and the European food and consumer business. Its results have reflected continuing challenges in the UK transport market.
In August 2007, the Company announced that it was to concentrate on its logistics business with the sale of its frozen vegetable business, Christian Salvesen Foods, comprising stock, plant, machinery, people and contracts to Pinguin Foods.
