The Dubai-government owned DP World plans to buy South Africa’s Imperial Logistics for $890 million, in what is said to be its most significant acquisition in Africa so far, according to media reports.
The deal will let DP World acquire all the outstanding shares of the Johannesburg JSE-listed logistics company and will provide the company greater visibility in South Africa and its neighbouring markets.
The offer denotes a premium of around 40 percent to Imperial’s share price as of 7 July 2021. The transaction is still subject to Imperial’s shareholder and other regulatory approvals and is expected to be closed around Q4-2021 or Q1-2022.
After the acquisition, Imperial will be delisted and this will give DP World a much-needed presence in the South African region, thereby adding new capabilities and relationships with cargo owners.
DP World is known as one of the largest operators of marine ports and inland cargo terminals in the world where they have had a presence in places like London, Antwerp, Africa, Russia, India and America.
Prior to this deal, DP World has somewhat gone on an acquisition spree as the company plans on being more and more diversified. DP World also bought supply chain solutions provider Syncreon Holdings last week for an enterprise value of $1.2 billion.
The company continues to look for ways to cut debt and is considering offering international investors a chance to buy into the Jebel Ali Free Zone, an asset that helped transform Dubai into a hub of global trade.