Today, Agility expects to complete the previously announced agreement whereby DSV Panalpina A/S (“DSV”) acquires Agility’s Global Integrated Logistics business (“GIL”), which is the global logistics division of Agility Public Warehouse Company K.S.C.P. (“Agility”).
As consideration for 100% of GIL, Agility receives 19,304,348 DSV shares (with a nominal value of DKK 1 per share) representing approximately 8% of all post-transaction outstanding shares of DSV.
The enterprise value of the transaction is approximately USD 4.77 billion (KD 1.43 billion) and equity value approximately USD 4.67 billion (KD 1.40 billion).
Regulatory clearances are pending in a limited number of jurisdictions, which are not material in the context of the overall size of the transaction.
The financial impact of this transaction during the third quarter will be as follows:
- Balance sheet: Replacing GIL’s carrying value estimated at USD 1.42 billion (KD 426.6 million) by the value of the 19.3 million shares of DSV, valued at DSV’s closing price as of August 31, 2021, at approximately USD 4.67 billion (KD 1.40 billion) equity value.
- Income statement: Booking a gain from disposal of discontinued operations representing the difference between the estimated carrying value of GIL, and the value of DSV shares, and after considering the transaction cost. The gain is estimated to be approximately USD 3.23 billion (KD 968.0 million).
- Carrying Value: it is worth noting that the final figure of GIL’s carrying value will be determined as of the end of August 2021 and accordingly the figure will change; this change should not be material in the context of the size of this transaction.
- Accounting treatment: The investment in DSV will be reported as per IFRS9 going forward.
Investor Relations Team