Agility Public Warehousing Co KSCP (“Agility”) would like to announce that it has entered into multi-year funded equity collar agreements with Morgan Stanley Bank-N.A., Citibank, National Association and Goldman Sachs Bank Europe SE (the “Counterparties”) in relation to shares representing up to 7.5 million of Agility’s stake in DSV A/S (“DSV”).
These agreements will allow Agility to drawdown, within a few weeks from today, up to EURO 1 billion, equivalent to around KD 330 million, which will be reflected in the company’s financials.
Agility maintains every expectation of DSV’s continued success, and its management ability to drive growth and value. However, given continued market uncertainty and the significance of the DSV stake on Agility’s overall value, Agility has undertaken this hedging transaction, out of prudence, to protect the value of the investment and the shareholders’ value. It is worth noting that this hedging instrument doesn’t imply that the company is selling its DSV shares. However, it enables Agility to benefit, to some extent, from the increase in the rise in the DSV share price, while at the same time limiting the impact of a possible decline in DSV stock price in the future within the agreed limits. It should be noted that this hedging instrument is funded, which means it will provide the company with EUROS 1 billion of relatively cheaper liquidity which will help and strengthen the company’s balance sheet.
This collar transaction will be accounted as a fair value hedge and will be reported in the financial statements at fair value through other comprehensive income.
Investor Relations Team