Brazilian logistics firm Sequoia Logistica has signed a preliminary agreement with shareholders of peer Grupo MOVE3 for a merger of the companies, it said in a securities filing.
Under the stock deal, Sequoia would absorb MOVE3, it said, adding that the latter’s shareholders – including investment fund JGB and asset manager Newfoundland Capital – would hold a “material” stake in the combined firm.
The business combination is aimed at creating “one of the private leaders in the express delivery and logistics solutions segment” in Latin America’s largest economy, said Sequoia, which did not provide financial details of the transaction.
The merger with MOVE3, which still requires final approval from both parties as well as the green light from Brazilian antitrust authorities, follows a recent deal struck by Sequoia with creditors for it to restructure its debt.
Sequoia currently has a market capitalization of 133.7 million reais ($27.55 million), according to LSEG data. The firm had its initial public offering priced at 12.40 reais per share in 2020 but its shares have plunged 97% since then.