Imperial Logistics, a South African freight management company has announced the increase of its stake in MDS Logistics, a subsidiary of UAC of Nigeria from 49% to 57%
This announcement was disclosed in a notification sent to the Nigerian Stock Exchange.
What you should know: UACN formerly held 51% of MDS while Imperial Logistics owned 49% through their strategic partnership which was concluded in April 2013.
What this means: Following the increase of its shareholding by 8%, Imperial Logistics will now be the largest shareholder in MDS. MDS will also receive $2.4 million in cash and be eligible for a series of selected profitable contracts. The transaction is based on a $40 million equity value for MDS.
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Elated responses: John Truter, Chief Executive of African Regions for Imperial Logistics explained that the move was necessary to aid its business expansion in Africa.
“Core to Imperial Logistics strategy is working with strong partners as we seek to expand our businesses across Africa. We consider Nigeria to be a strategically important market and we are excited to continue our partnership with UAC to grow MDS and expand its service offering to clients.”
Taiwo Ajibola, MDS Managing Director said the move was important because it meant greater value with more assets.
“We at MDS remain focused on leveraging our assets, technology and capabilities to deliver value to our clients. We will continue to benefit from the strengths of our shareholders, Imperial Logistics and UAC.”
Fola Aiyesimoju, UAC Group Managing Director admitted that the new development was an important milestone for a broader logistics platform.
“The transaction is an important milestone for UAC and consistent with our strategy of working closely with partners in empowering the best in class management teams. Since the commencement of the partnership in 2013, we have been impressed by Imperial Logistics operational experience in warehousing, distribution and transport. We look forward to greater integration between MDS and the broader Imperial Logistics platform as we strive to deliver value to clients.”
MDS is an integrated logistics services provider. It has a network of warehousing and distribution assets. MDS Logistics Ltd (formerly known as Manufacturers’ Delivery Services – MDS) was established in 1965 to provide warehousing services to GBO which at the time was the merchandising division of UAC of Nigeria PLC (UACN).
MDS operated as a department within GBO and provided services to only UACN companies, an offering which over time was extended to third party companies.
About Imperial Logistics
Imperial Logistics is mainly an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics and distributorship – customised to ensure the relevance and competitiveness of its clients. The group is listed on the Johannesburg Stock Exchange in South Africa.
About UAC of Nigeria Plc
UAC of Nigeria Plc is a publicly listed company based in Nigeria. Its areas of operation include manufacturing, services, logistics and warehousing, agricultural and real estate.
The company’s food operations include UAC Franchising, UAC Restaurants and UAC Dairies. It also has an equity stake in UACN Property Development Company – a quoted firm, CAP Plc – makers of Dulux paints, and Portland Paints, manufacturers of Sandtex paints.
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