Imperial Logistics will delist from the Johannesburg Stock Exchange (JSE) after 35 years following a R12.7-billion buyout by Dubai-based DP World Logistics.
The deal on Friday scaled the final hurdle after the Competition Tribunal gave it the green light. The competition authority approved the deal with certain conditions. These include the establishment of an employee share ownership programme through which employees will have an effective 5% interest in Imperial Logistics South Africa.
The company is also expected to “increase its enterprise and supplier development expenditure in South Africa, its spend on corporate social responsibility initiatives and training and development of black persons and procurement from black persons”.
Other conditions imposed by the tribunal are:
- No employees may be retrenched because of the merger for a period of three years from the merger’s implementation date;
- Imperial will incur no less than R2.1-billion of capital expenditure in its South African operations (during a period of four years expiring on June 30 2025);
- It will increase its spend on corporate social responsibility initiatives by not less than 10% per annum over and above the current R16.5-million per
annum; and - Imperial will spend an additional R15-million over three years on training and development of black people.
DP World is one of the world’s biggest operators of marine ports and inland cargo terminals, with gateways from London to Antwerp as well as hubs in Africa, India, Russia and the Americas.
The Dubai-based company has been on an acquisition spree as it attempts to become a more diversified and integrated logistics company.
The deal to acquire Imperial, which will kick in on March 14, will see the company delist its shares from the main board of the JSE on March 15.
Imperial’s Group CEO Mohammed Akoojee said:
“Combining DP World’s world-class infrastructure, specifically its investment and expertise in ports on the African continent, 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, also driving greater supply chain efficiencies and ultimately enhancing value for all stakeholders.”
His DP World counterpart, Sultan Ahmed Bin Sulayem, said the acquisition was expected to also add strategic value to the company given Imperial’s attractive footprint, strong market access and logistics solutions capability.
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