Mobilizing Quickly To Support A Cross-Border Transaction
UTi Worldwide (NASDAQ:UTIW), a global supply chain services and solutions provider, retained FTI Consulting to advise the company on its planned sale to a Danish competitor. The engagement complemented ongoing FTI Consulting strategic communications support for the company.
Our Role With UTi
On October 9, 2015, UTi Worldwide announced it had entered into a definitive agreement to be acquired by DSV for $7.10 in cash per ordinary share, or approximately $1.35 billion. FTI Consulting prepared all deal-related stakeholder communications over a three-day period prior to the announcement, including tailoring all engagement materials for investors, employees, customers, and vendors. Additionally, FTI Consulting served as the main media contact globally, with teams in the U.S., U.K., and South Africa.
As part of the communications strategy for the announcement, FTI Consulting helped UTi Worldwide prepare for and eventually mitigate a significant risk to the deal: the proposed transaction price. Although the price represented a 34% premium over the 30-day volume-weighted average trading price for the ordinary shares, it was significantly less than the 52-week high. Accordingly, FTI Consulting counseled the company on the possibility that an activist may approach the company post-announcement in a strategy commonly referred to as “bumpatrage”, or where investors threaten to block a deal unless the bidder offers a slightly higher price. Shortly thereafter, an activist fund filed a 13-D asking for either a higher deal price or for UTi Worldwide to pursue other potential buyers that would be willing to pay a higher price.