South Africa’s leading logistics provider Imperial Logistics Limited has decided to increase its stake in MDS Logistics Limited, a subsidiary of Nigeria’s oldest surviving and largest conglomerate UAC of Nigeria Plc, from 49 to 57 percent. The agreement sees Imperial Logistics get a controlling stake in the company, a transaction for which MDS was valued at USD 40 Mn.
In consideration for the extra 8 percent equity stake, the South African firm will transfer selected profitable contracts to MDS and pay the agreed sum in cash, even while the transaction is still subject to relevant regulatory approvals.
One of the leading integrated logistics services providers in the West African country, MDS links manufacturers with customers in more than 400 cities and villages across Nigeria via its network of warehousing and distribution assets. The company is a critical supply chain and distribution ally to some of the leading corporate organizations in the country.
In a regulatory filing just submitted at the Nigerian Stock Exchange (NSE), Group Managing Director, Fola Aiyesimoju described the transaction as an important milestone for the conglomerate. According to him, the sale is consistent with the company’s strategy of working side by side with partners in empowering best-in-class management teams.
UAC and Johannesburg Stock Exchange-listed Imperial Logistics have been partners since 2013 when the first stake acquisition was done, along which line the Nigerian company has been impressed by the latter’s operational excellence in warehousing, distribution, and transport.
Imperial Logistics is an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics, and distributorship. All of its services are customized to ensure the relevance and competitiveness of its clients. The group employs over 25,000 people in 32 countries.
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”.
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.
Image Courtesy: Moneycontrol
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