The board of logistics company Wincanton PLC (LSE:WIN, OTC:WNCNF) has thrown its support behind an increased £762 million cash offer for the company from GXO Logistics.
Commenting on the GXO Offer, Sir Martin Read, chairman of Wincanton, said: "We have long been clear that Wincanton is a great business with a compelling strategy, strong customer relationships and excellent people.
“Under the current management team, we have made positive progress and ensured that Wincanton is at the forefront of logistics innovation.
“The Board of Wincanton is pleased that GXO recognises the very significant value inherent in this business and intends to recommend the offer to shareholders for their consideration."
Wincanton had previously urged shareholders to accept a lesser offer from French bidder CEVA, until GXO rebuffed with a knock-out bid on Thursday.
GXO’s offer for the group was 26% higher than French bidding rival CEVA, and suggests a £764 million enterprise value taking into account debt obligations.
The offer represents a 104% premium to Wincanton’s closing price on 18 January, when the offer period commenced.
Some 34% of Wincanton's shareholder base has already voiced support for the bid, GXO said on Thursday.