Trailer Magazine

Qube intends to take Chalmers over

  • Posted on Friday 28th, June 2019.

Logistics service provider, Qube Holdings, has announced its intention to make an off-market takeover offer for all of the ordinary shares of Chalmers.

Qube said in a statement that it would action the offer indirectly through its wholly owned subsidiary, Qube Logistics.

Qube intends to offer holders of Chalmers shares the option to elect or receive (but not a combination of both) for each Chalmers share held: 2.31 Qube shares (scrip option) or $6.50 cash (cash option).

This is reported to value Chalmers at approximately $60 million with any cash component to be funded from existing
Qube debt facilities.

“The offer provides an opportunity for Chalmers shareholders to obtain liquidity for their shares at an attractive premium,” said Qube Managing Director, Maurice James.

“The structure of the offer enables Chalmers shareholders to elect to cash out their Chalmers Shares or, by electing the scrip option, to share in the growth of the Qube Group,” he said.

Chalmers Chairman, Graham Mulligan, said the offer represents attractive value for Chalmers shareholders.

“The directors of Chalmers intend to unanimously recommend that Chalmers shareholders accept Qube BidCo's off-market takeover offer for all the ordinary shares in Chalmers, in the absence of a
superior proposal,” he said.

The Chalmers transport and logistics operations, coupled with the company’s strategically located property assets, are reported to be complementary to those of Qube Logistics. The acquisition will allow Qube to progress its growth plans while also providing an opportunity for significant cost savings by integrating the Chalmers businesses to achieve greater efficiencies and economies of scale.

In May, Qube announced a $135 million acquisition.

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