DP World makes an audacious US$1.2b bid to acquire 100% stake in Imperial Logistics

SOUTH AFRICAImperial Logistics has announced that it has entered into a transaction implementation agreement regarding a cash offer of ZAR66 (US$4.6) per share from DP World to acquire all outstanding shares of Imperial, implying an estimated aggregate cash consideration of ZAR 12.7 billion (US$891 million).

This offer represents a premium of 39.5 percent to the Imperial share price as of July 7, 2021, and a 34.2 percent premium to the 30-day volume-weighted average price of Imperial.

“DP World is interested in acquiring Imperial and all its businesses to expand its logistics footprint in Africa and Europe. Imperial’s Logistics International business is within the scope of the offer and as such will not be sold separately under this proposed offer,” read the release.

Mohammed Akoojee, Group CEO of Imperial, said, “This transaction will be value-enhancing for Imperial as our 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. Our Logistics International business and operations are also aligned with DP World’s strategic expansion plans on the European continent.”

“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,” he added.

Oh his part, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are excited to announce the proposed acquisition of Imperial, which will add significant strategic value to DP World given its attractive footprint and strong logistics solutions capability. Imperial has a significant presence in Africa, a market where trade is expected to grow at more than 2x GDP driven by population growth, accelerated urbanization and rising middle classes. 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.”

Imperial is the second-largest logistics-focused acquisition for DP World in almost as many days.

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”

Sultan Ahmed Bin Sulayem – Group Chairman & CEO, DP World

On 5 July 2021, the Dubai government-owned company said it wished to acquire US-based Syncreon, a global logistics provider in the supply chains for the automotive and technology industries, for US$1.2 billion (R17.19 billion).

DP World said the Imperial shares offer represented a premium of nearly 40 percent to the transport and mobility group.

DP World is listed on Nasdaq Dubai, and is a subsidiary of DP World Limited, a global infrastructure-led supply chain solutions provider with 136 business units in 61 countries, across six continents and said it would use existing resources to fund the deal.

DP World Group had invested US$18 billion across its portfolio over 10 years to build infrastructure to support the growth in global trade. Its operations include ports and terminals, economic zones, feedering and logistics.

In Africa, it manages about 3.5 million 20-foot equivalent units of capacity in Senegal, Mozambique, Somaliland, Angola, Rwanda, Algeria, and Egypt.

More than US$2 billion of new investment was planned for new capacity in Senegal, the Democratic Republic of Congo, Angola, Somaliland, and Mali.

Imperial would be DP World’s most significant investment on the African continent.

Imperial had been restructuring its portfolio recently and in June 2021 said it would buy Deep Catch Namibia Holdings for about R633 million (US$44 million) from an investment consortium led by Salt Capital.

It also recently disposed of its South American shipping interests for R1.4 billion. (US$98.2 million).

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