DP World has made a cash offer of around ZAR12.7bn (US$890m) to acquire Imperial Logistics, an integrated logistics company with operations mainly across the African continent and in Europe.
The Dubai-based company hopes that the proposed deal will enhance its capabilities in Africa, building on its infrastructure of ports, terminals and economic zones.
It will contribute to the terminal operator’s transformation into a logistics company offering end-to-end supply chain services to cargo owners.
Imperial, which has a presence across 25 countries, focuses on fast-growing industries including healthcare, consumer, automotive, chemicals, industrial and commodities.
The offer of ZAR66 per share represents a premium of 39.5% to Imperial’s share price, as of July 7, 2021, on the Johannesburg Stock Exchange (JSE) and a 34.2% premium to the 30-day volume weighted average price.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “The acquisition of Imperial will help DP World to build better and more efficient supply chains for the owners of cargo, especially in Africa.
“Imperial’s operations are complementary to our network of ports, terminals and logistics operations on the continent.”
Mohammed Akoojee, group CEO of Imperial Logistics said: “This transaction will be value-enhancing for Imperial as the business will benefit from DP World’s leading technology, global networks and key trade lane volumes, while enabling us to build on our ‘Gateway to Africa’ strategic and growth ambitions.”
He noted that by combining the Dubai-based company’s infrastructure and ports in Africa with Imperial’s logistics and market access platforms will enable the company “offer integrated end-to-end solutions along key trade lanes into and out of Africa, also driving greater supply chain efficiencies”.
In a statement, DP World noted that it remains committed to its leverage target of net debt being below four times EBITDA by the end of 2022.
This transaction is subject to Imperial’s shareholder approval and other customary completion conditions including regulatory approvals.