Imperial Logistics increases stake in UACN to 57%
UAC of Nigeria (UACN) Plc and Imperial Logistics have entered into an acquisition agreement that will see Imperial Logistics acquiring additional 8 percent shareholding in MDS Logistics, a subsidiary of UACN to increase its equity stake from 49 to 57 percent.
August 29, 2019: UAC of Nigeria (UACN) Plc and Imperial Logistics have entered into an acquisition agreement that will see Imperial Logistics acquiring additional 8 percent shareholding in MDS Logistics, a subsidiary of UACN to increase its equity stake from 49 to 57 percent. The transaction valued MDS at $40 million, about N12.24 billion.
In consideration for the 8 percent 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 with its presence in 32 countries.
In a regulatory filing submitted at the Nigerian Stock Exchange (NSE), group managing director, UACN, 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.
MDS Logistics MD 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.”
Chief executive officer for African Regions, Imperial Logistics, 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,” said.