DP World to acquire Imperial Logistics for R12.7 billion
The deal supports Imperial’s broader ‘Gateway to Africa’ strategy, positioning it as the leading logistics partner in Africa.
Imperial Logistics’ shares soared 33.72 percent, closing at R63.25 on Thursday, after the company announced a deal with global supply chain solutions provider DP World to acquire the company for an estimated R12.7 billion in cash.
In a joint announcement, Imperial and DP World stated that the offer represents a 39.5 percent premium to Imperial’s share price as of 7 July, and a 34.2 percent premium to Imperial’s 30-day volume weighted average price.
“Combining DP World’s world-class infrastructure, specifically its investment and expertise in ports on the African and European continents, with Imperial’s logistics and market access platforms will enable us to offer integrated end-to-end solutions along key trade lanes into and out of Africa and accelerate our position in Europe, driving greater supply chain efficiencies and ultimately enhancing value for all stakeholders,” said Imperial group CEO Mohammed Akoojee (pictured).
Dubai Ports World (DP World) is an Emirati multinational cargo logistics company headquartered in Dubai, UAE. It specialises in port terminal operations, maritime services, and free trade zones.
“Imperial has a significant presence in Africa, a market where trade is expected to grow at more than two times GDP, driven by population growth, accelerated urbanisation and rising middle classes,” said DP World group chair and CEO Sultan Ahmed Bin Sulayem.
“Imperial’s business strongly complements DP World’s existing footprint in Africa and Europe and will allow us to deliver a fully integrated end-to-end solution to cargo owners across a wider market,” he added.
Analyst at Chronux Research, Rowan Goeller called the offer a very good one for Imperial and its shareholder: “Imperial should take the offer and be very thankful,” he said.