DSV PANALPINA A/S

SNAP SHOT
• Proposed $4.6bn merger with Panalpina is expected to complete in around six months – expected to build scale in the consolidating
transport sector (Panalpina had accepted an all-share offer of 2.375 DSV shares for each Panalpina share)

• Panalpina shareholders will receive 2.375 DSV shares per one Panalpina share in the deal, which already has the support of
shareholders representing 69.9% of the registered shares of Panalpina. This includes Panalpina’s largest shareholder, the Ernst Göhner
Foundation.

• DSV (Danish giant) and its Swiss rival Panalpina united will create a $17bn revenue global freight forwarder handling 1.5m tonnes of
airfreight and close to 3m containers (TEU’s) per year.

• DSV with a series of takeovers that includes ABX, Frans Maas and UTi over the past four years, expects to acquire “new skills and ways
of working” from Panalpina.

• Takeover of Panalpina would add 49% to DSV’s revenue and 14% to EBIT on a pro-forma basis and that the combination will become
the world’s fourth largest freight forwarder, behind Deutsche Post DHL, Kuehne+Nagel and DB Schenker; and the global No. 2 in air
freight. (rankings by Armstrong & Associates)

• According to Jens Bjørn Andersen - chief executive of DSV, Combined revenue amounts to DKK 118bn / $18bn, comprising airfreight
(33% of combined revenue), sea freight (27%), road freight (26%) and contract logistics (14%). DSV targets the takeover to be EPS-
accretive in year 2, after synergies lifting Panalpina’s EBIT margin from 2.0% in FY18 to a level at least in line with DSV at 7.5% for
FY19E over the next 2-3 years.

• Merger is targeting commercial synergies, from cross-selling based on a stronger network and improved service offering, improving
Panalpina’s yields, as well as cost synergies, from the consolidation of operations, administration, facilities and the IT infrastructure.

• Note that Panalpina is mainly focused on air & sea freight forwarding (where DSV’s profitability is estimated at >10.0% for FY19E) and
Danish operator known for its extensive pan-European road haulage network as one example for synergy potential.
• The 20 largest freight forwarders control just a third of the market, making the industry ripe for takeovers or
partnerships as companies look for ways to improve profitability and take advantage of economies of scale.
(Source: www.reuters.com)
• DSV predict to integrate Panalpina into its setup within two to three years; DSV’s earnings before interest and
tax margin was almost 7 percent in 2018, while Panalpina’s was around 2 percent, according to analysts at
Sydbank. Ernst Göhner Foundation, Panalpina’s largest shareholder with a 46% stake, has agreed with DSV to
tender all of its shares in the Public Exchange – which will become DSVs largest shareholder post-merger with
a holding of approximately 11% of the issued share capital.

Source: aircargonews.net
Source: aircargonews.net
Source: aircargonews.net
 DSV SRI LANKA SET UP
DSV PERSHIP PVT LTD
DSV has 48 staff in Sri Lanka and operates in a joint venture
with the Pership Group in Colombo, which has been in the
transportation business for over 100 years.

Pership offer full air and sea services as well as special air
charters, and are specialists in fashion and garment on
hanger (GOH) logistics.

They have over 11,000 m2 of warehouse space available and

offer guaranteed express services to all major gateways in
Europe, North America /west and east coasts) and the Far
East.

Full customs brokerage is available, and they can also arrange

insurance for customers.
 PERSHIP PARTNERS DANISH LOGISTICS GIANT DSV
2018 Sep 12

Speaking at the launch, DSV Air and Sea Indian Subcontinent Regional Director Sameer Khatri said: “It is an honour to witness the launch of
DSVPership.We believe that the only way we can continue to grow is through partnership by constantly creating new value to our customers.”
Khatri also mentioned that as the supply chain remains a key factor in determining the competitive edge of a company, it is imperative that a
corporation has a suitable supply chain partner.

Pership is a local company established in 1889, providing services in sea transportation, warehousing contract logistics, terminal
management, freight forwarding, property development, and container conversions.

DSV is a logistics and transport company founded in 1976 in Denmark. It is currently present in 88 countries and has over 45,000 employees
globally.
DSV & PANALPINA SHARE DETAILS

Source: www.bloomberg.com
The total share capital consists of 188 million shares of each 1 DKK. There
is only one share class and no restrictions on transferability or voting
rights.
Composition of shareholders
On 31 December 2018, the registered shares of DSV A/S totalled 167
million, corresponding to 89% of the share capital.
DSV has no majority shareholder and 100% free float of shares.
Approx. 27% of the registered shares are registered in Denmark and 73%
are registered outside Denmark
• BlackRock, Inc., New York, USA, 5.4%
• Morgan Stanley, Wilmington, USA 5.0%
• Capital Group Companies Inc., Los Angeles, USA 5.0%
• DSV A/S 5.31%
• No other shareholders have flagged that they own or control more
than 5% of DSV’s share capital.
Panalpina World Transport (Holding) Ltd. (PWT), the ultimate
holding company of the Panalpina Group, is the only listed
company within the scope of consolidation.
The PWT shares are exclusively listed on the SWX Swiss
Exchange.
The market capitalization on the closing date amounted to CHF
2,592.5 million (25,000,000 registered shares at CHF 103.70 per
share).
On the closing date
• The free float consisted of 14,340,000 registered shares (=
57.36% of the share capital) and thereof
• PWT held treasury stock consisting of 250,000 registered
shares (= 1% of the share capital).
The Ernst Göhner Foundation, Zug, Switzerland, is the main
shareholder of PWT, with a share capital of 42.64%.
Source: www.marketscreener.com