UAC of Nigeria Plc has notified the Nigerian Stock Exchange (NSE) and its shareholders and stakeholders that the company has entered into an agreement with Imperial Logistics Limited.
Under the deal, Imperial Logistics proposes to increase its shareholding in MDS Logistics Limited from 49 per cent to 57 per cent, by acquiring additional eight per cent shareholding .
The Transaction is subject to relevant regulatory approvals.
Under the terms of the transaction, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash. The transaction is based on a $40 million equity value for MDS.
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 and employs over 25,000 people in 32 countries.
UAC is a holding company that owns businesses with some of Nigeria’s strongest brands and widest distribution. UAC’s businesses are engaged packaged food and beverages, paints, logistics, animal feeds and edible oils, quick service restaurants and real estate.
Johan Truter, Chief Executive of African Regions for Imperial Logistics, said: “Core to Imperial Logistics’ strategy is working with strong partners as we seek to expand our 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.”
Fola Aiyesimoju, UAC’s Group Managing Director, said: “The transaction is an important milestone for UAC and consistent with our strategy of working closely with partners in empowering best-in-class management teams. Since the commencement of the partnership in 2013, we have 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.”
Taiwo Ajibola, Managing Director, MDS, said: “We at MDS remain focused on leveraging our assets, technology and capabilities to deliver value to our clients. We will continue to benefit from the strengths of our shareholders, Imperial Logistics and UAC.”