Nigeria’s oldest surviving and largest conglomerate, UAC of Nigeria (UACN) Plc and South African leading logistics provider, Imperial Logistics Limited have entered into a share acquisition agreement that will see Imperial Logistics acquiring the controlling equity stake in MDS Logistics Limited, a subsidiary of UACN.
Under the agreement, Imperial Logistics will acquire additional 8.0 per cent shareholding in MDS Logistics from UACN to increase Imperial Logistics’ equity stake from 49 per cent to 57 percent.
The transaction valued MDS at $40 million, about N12.24 billion In consideration for the additional 8.0 per cent equity stake, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash. The transaction is however still subject to relevant regulatory approvals.
MDS is Nigeria’s leading integrated logistics services provider through its network of warehousing and distributions assets, MDS links manufacturers with customers in more than 400 cities and villages across Nigeria. MDS is a critical supply chain and distribution partner to some of Nigeria’s leading corporates.
Imperial Logistics is mainly an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics and distributorship – customised to ensure the relevance and competitiveness of its clients.
The group is listed on the Johannesburg Stock Exchange in South Africa and employs over 25,000 people in 32 countries.
In a regulatory filing just submitted at the Nigerian Stock Exchange (NSE), Group Managing Director, UAC of Nigeria (UACN) Plc, Mr. Fola Aiyesimoju described the transaction as an important milestone for the conglomerate noting that the deal was in line with the group’s strategy of working closely with partners in empowering best-in-class management teams.
According to him, since the commencement of the partnership in 2013, the group has been impressed by Imperial Logistics’ operational excellence in warehousing, distribution and transport.
“We look forward to greater integration between MDS and the broader Imperial Logistics platform as we strive to deliver value to clients,” Aiyesimoju said.
Managing Director, MDS Logistics Limited, Taiwo Ajibola, said MDS will remain focused on leveraging its assets, technology and capabilities to deliver value to its clients.
“We will continue to benefit from the strengths of our shareholders, Imperial Logistics and UACN,” Ajibola said.
Chief Executive, African Regions, Imperial Logistics Limited, Johan Truter said working with strong partners is at the core of Imperial Logistics’ strategy as it seeks to expand its businesses across Africa.
“We consider Nigeria to be a strategically important market and are excited to continue our partnership with UAC to grow MDS and expand its service offering to clients,” Truter said.