By Modupe Gbadeyanka
UAC of Nigeria Plc has entered into an agreement with Imperial Logistics Limited for the acquisition of more stake in MDS Logistics Limited.
This deal is expected to raise the company’s shareholding in MDS Logistics to 57 percent from 49 percent via the acquisition of additional 8 percent shareholding from UAC.
UAC Nigeria, which announced this transaction, said it was approvals would still have to be received from relevant regulators before it can be completed.
However, it explained that under the terms of the deal, which is based on a $40 million equity value for MDS, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash.
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.
UAC is a holding company that owns businesses with some of Nigeria’s strongest brands and widest distribution. UAC’s businesses are engaged in the following sectors – 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 explains, “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, MDS’ Managing Director 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.”
