Global supply chain specialist DP World has announced a cash offer of R12.7-billion to acquire JSE-listed Imperial Logistics, a deal that is expected to close by the first quarter of 2022.
According to the Dubai-based logistics giant, the acquisition will enhance its capabilities, particularly in Africa, building on its extensive infrastructure of ports, terminals and economic zones. It will also significantly accelerate its transformation into an advanced logistics company, offering end-to-end supply chain services to the owners of cargo.
“Combining the companies will create the continent’s best network across inland logistics, ports and terminals, economic zones and marine logistics. DP World aims to improve connectivity between African producers along fast-growing trade lanes to the rest of the world,” said DP World Group chairman and CEO, Sultan Ahmed Bin Sulayem.
Mohammed Akoojee, group chief executive officer 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. Combining DP World’s world-class infrastructure, such as its investment and expertise in ports on the African continent, 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, also driving greater supply chain efficiencies, and ultimately enhancing value for all stakeholders.”
The deal will be funded from DP World’s existing available resources.
