DP World has announced it has made an offer to Imperial Logistics, an integrated logistics and market access company with operations mainly across Africa and in Europe. DP World hopes to use the acquisition to enhance its capabilities along supply chains and help transform the company into a logistics solutions provider.
DP World’s cash offer of ZAR*66 per share implies an equity consideration of around ZAR2.7bn, around $890m. It represents a premium of 39.5% to the Imperial share price as of July 7, 2021, on the Johannesburg Stock Exchange and a 34.2% premium to the 30-day volume-weighted average price. The transaction is subject to Imperial’s shareholder approval and other customary completion conditions including regulatory approvals.
Imperial is an integrated logistics and market access solutions provider with a presence across 25 countries, including a significant footprint in the high growth Africa market. The group focuses on fast-growing industries including healthcare, consumer, automotive, chemicals, industrial and commodities. Imperial’s business has been built on long-term partnerships with cargo owners, in addition to serving as a trusted partner to many multinational clients, principals and customers.
DP World hopes the acquisition of Imperial will add new capabilities for the company, particularly in Africa. DP World states it aims to improve connectivity between African producers along fast-growing trade lanes to the rest of the world.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said, “The acquisition of Imperial will help DP World to build better and more efficient supply chains for the owners of cargo, especially in Africa. Imperial’s operations are complementary to our network of ports, terminals and logistics operations on the continent.”
The deal will be funded from DP World’s existing available resources. DP World states it is continuing to make positive progress on its capital recycling programmes, and that it remains fully committed to its leverage target of net debt being below four times EBITDA by the end of 2022.
Source: DP World
*ZAR=€0.06/$0.07
