Imperial Logistics, Africa-focused logistics company has gotten the go-ahead to own 100% of the J&J Group, giving Imperial which is owned by Emirati multinational logistics company DP World greater access to the continent.
Imperial says in a statement on Tuesday that the transaction – which is being processed in tranches of three – will first see a transfer of 51% stake of the company and thereafter a transfer of 46.5% and 2.5% to follow.
Through this deal, Imperial gains access to J&J Group’s integrated logistics operations on the Mozambique Beira corridor, as well as its extensive cross-border fleet which is supported by a network of trucking depots in Mozambique, South Africa, Zambia and Zimbabwe.
“This acquisition complements our ‘Gateway to Africa’ focus as it optimises and expands our reach in Africa by providing scale in end-to-end cross-border transportation services in key countries and new industries,” Imperial group CEO Mohammed Akoojee says.
“This acquisition strengthens DP World’s position as an end-to-end logistics provider, by adding J&J’s significant presence along these key corridors in Africa – a market where trade is expected to grow at more than twice GDP driven by population growth, accelerated urbanisation and rising middle classes,” DP World CEO Sultan Ahmed Bin Sulayem adds.
ALSO READ: JSE to suspend Tongaat Hulett for second time in three years
Imperial was recently acquired by DP World for an estimated R12.7 billion and delisted from the JSE in March.
For DP World the African continent remains a key growth region. The company – which is based in Dubai – already operates nine ports and terminals across eight African countries, including Algeria, Angola, Egypt, Mozambique, Rwanda, Senegal, Somaliland and South Africa.
“Africa is centrally positioned to fit into the global trade and supply chains, and the development of trade corridors and port infrastructure is critical to connect the continent to drive economic growth and development.”
Sharing similar sentiments regarding the Africa expansion project, the J&J Group’s current controlling shareholders Carlyle and Ethos Private Equity say: “We are excited for J&J to partner with Imperial and believe that the operations of these two businesses are very complementary. This combination offers existing and potential J&J clients a true gateway to Africa.”
Source: News 24