SYDNEY: Australian logistics firm Brambles Ltd said it is weighing an unsolicited takeover offer from European private equity company CVC Capital Partners, which a report pegged it at A$20bil (US$13.89bil or RM61bil) including debt.

Shares of Brambles jumped as much as 13.3% to an eight-month high of A$11.82 , logging their sharpest intraday percentage gain since February 2003, after the pallets and container supplier confirmed the talks. If the deal goes through, it would be the biggest private equity takeover in the country. Brambles’ market value stood at A$15bil , as of Friday’s close, according to Refinitiv data.

“Brambles notes the engagement is preliminary, incomplete and there has been no formal proposal received from CVC,” Brambles said in a statement.

CVC Capital could not be immediately reached for comment on the deal terms.

Brambles, which rents crates and pallets globally to fast-moving consumer goods companies, is well-positioned to benefit from the current crunch in container availability amid a pandemic-fuelled boom in eCommerce activity.

The company has been under investor scrutiny for its proposal to build a plastic pool for its customers in the United States, including big-box retailer Costco.

In its April trading update, Brambles had flagged headwinds from supply chain constraints amid the Russia-Ukraine conflict and rising inflation that will affect its outlook for the next year.

“The board is also considering other strategic options for the company that maximise shareholder value,” it added.

 - Reuters