Kuwaiti "Agility" announced today, Tuesday, that it has entered into funded agreements with banks to hedge its investments in the Danish transportation company "DSV."
The company revealed that it has signed funded hedge agreements for multiple years with banks that will allow it to withdraw up to one billion euros (1.1 billion dollars) in the coming weeks.
In a statement to the stock exchange, the company indicated that the agreements were made with Morgan Stanley, Citibank National Association, and Goldman Sachs regarding shares representing up to 7.5 million shares of Agility's stake.
The statement explained: "Given the ongoing uncertainty in the equity markets and the size and importance of the value of the DSV stake relative to Agility's total value, the company's management has prudently conducted this hedge transaction to protect value for its shareholders."
Agility noted that this hedging instrument is funded, which will provide the company with low-cost liquidity amounting to one billion euros, helping to support the company's budget.
Agility is the second-largest shareholder in DSV with an eight percent stake after the Kuwaiti company sold its integrated global logistics services business to DSV in an all-stock deal in 2021.
