After months of haggling, USbased logistics provider EGL Inc. has accepted a US$2 billion bid to be acquired by the Ceva Group, which is owned by private-equity firm Apollo Management.
Under the agreement, EGL shareholders will receive $47.50 in cash per share of EGL stock they hold at the time of the merger. CEVA also amended the “no-deal” fee, dropping the fee payable by EGL to CEVA from $30 million to $20 million, and increasing the fee payable by CEVA to EGL.
The purchase price represents a premium of about 60 percent over $29.78, the closing price of EGL stock on Dec. 29, the last trading day before an initial proposal was made by a group led by EGL chief executive officer Jim Crane to take EGL private. Subsequent offers led to a bidding war between the Crane-led group and Ceva in the past few months, with Ceva’s the highest offer.
EGL, which operates under the name Eagle Global Logistics, while Ceva, formerly TNT Logistics, was purchased by Apollo last year.