UTi shareholders vote for takeover by DSV

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UTi Worldwide shareholders yesterday voted to adopt the $1.35 billion takeover by Danish logistics company DSV.

The firm says it held a special shareholders meeting and subsequent special class meeting held earlier.

In a statement UTi says it had voted “overwhelmingly voted to adopt the previously announced merger agreement providing for the acquisition of UTi Worldwide by DSV.

“Upon completion of the transaction, each ordinary share of UTi Worldwide will convert into the right to receive a cash payment of $7.10, without interest.”

DSV is making the acquisition as it is seeking to expand in the US air and sea freight markets.

On 3 September last year, UTi cut its 2016 profit forecast for the second time in six months after earlier in the year announcing job and cost cuts, accelerating a year-to-date plunge of 61 per cent.

The two companies had combined sales of $13 billion in 2014 and will have 44,000 employees in 84 countries. DSV says it expects UTi’s profit margin to improve in the “long term,” the combined entity will deliver the same margins as the Danish company.