The global logistics company DP World has acquired South Africa’s Imperial Logistics for 12.7 billion rand ($890 million). The move significantly strengthens its presence on the African market, Arab News reported.
Imperial Logistics is a leading South African maritime cargo carrier. Its management board is led by Phumzile Langeni, who serves as its chairman and non-executive director.
The deal was finalized when DP World offered to buy all outstanding shares in the South African company, placing a 39.5-percent premium on its listed stock on the Johannesburg Stock Exchange (JSE). The Dubai entity made an offer of 66 rand per share.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said the acquisition adds significant strategic value to the company given Imperial Logistics’ attractive footprint and strong logistics solution capabilities.
“Imperial has a market-leading 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,” Sulayem said.
The acquisition demonstrates the company’s long-term confidence in the South African economy and the broader regional market.
It is expected to position the Dubai-based company as a market leader in Africa.
“Imperial’s business strongly complements DP World’s 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,” Sulayem said.
Since the acquisition was announced, Imperial Logistics’ share price on the JSE has jumped by nearly 34 percent, Reuters reported. Nonetheless, the company will delist from the exchange after the acquisition.
