One of the world’s largest logistics companies DP World has made a R12.7bn cash offer to purchase JSE-listed Imperial Logistics. Imperial, which has streamlined its business after the spin-off of its automative unit Motus, has benefited from a booming e-commerce industry, accelerated by the pandemic trends. The offer of R66 a share represents a 40% premium to Imperial’s closing price of R47.30 on Wednesday. A broader trend is starting to emerge, with foreign buyers interested in ‘cheap’ South African assets. Adapt IT, Distell and now Imperial, all pending shareholder approval, will be foreign owned in the next twelve months. Whilst the rest of the world is experiencing an IPO boom that has never been seen before, the local bourse continues to lose businesses at a rate of knots. – Justin Rowe-Roberts
DP World buys South Africa’s Imperial Logistics for $890m
By Adveith Nair
(Bloomberg) – Dubai-based DP World plans to buy South Africa’s Imperial Logistics for $890m, in what the port operator said would be its most significant acquisition in Africa so far.
The company plans to offer R66 ($4.60) per share, a 40% premium to Imperial’s closing price on Wednesday. The deal is expected to close by the first quarter of 2022.
“Imperial’s business strongly complements DP World existing footprint in Africa and Europe and will allow DP World to deliver a fully integrated end-to-end solution to cargo owners across a wider market,” it said in a statement on Thursday.
DP World is one of the world’s largest operators of marine ports and inland cargo terminals, stretching from gateways in London and Antwerp to hubs in Africa, Russia, India and the Americas.
The firm has been on an acquisition spree as it attempts to become a more diversified, integrated logistics company. It bought supply chain solutions provider Syncreon Holdings last week for an enterprise value of $1.2bn.
Meanwhile, DP World continues to look for ways to cut debt and is considering offering international investors a chance to buy into the Jebel Ali Free Zone, a prized asset that helped transform Dubai into a hub of global trade, people familiar with the matter have said.
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