EPaper

Imperial investors back buyout

• Investors approve the transaction, potentially SA’s biggest since Pepsico’s acquisition of Pioneer Foods

Karl Gernetzky Markets Writer gernetzkyk@businesslive.co.za

Imperial Logistics shareholders have given the nod to a R12bn buyout offer from Dubai Ports World, crushing a late push by at least one investor for a sweetened offer. At a meeting on Friday, 86% of shareholders voted in favour of the transaction.

Imperial Logistics shareholders have given the nod to a R12bn buyout offer from Dubai Ports World (DP World), crushing a late push by at least one investor for a sweetened offer.

At a meeting on Friday, 86% of shareholders voted in favour of the transaction, which needed approval from three-quarters of shareholders.

The deal still needs a nod from competition authorities, and if concluded, it would be among the biggest SA takeovers since Pepsico’s $1.7bn acquisition of Pioneer Foods in 2020.

Drinks-maker Distell is also in the middle of negotiations that could see it taken over by top European brewer Heineken.

Imperial has given February 2022 as the date for completing the transaction, but has noted approval processes are difficult to accurately predict.

Only one top five shareholder, Abax Investments, had publicly said outright that it supported the transaction, though Imperial had noted that the majority of those they “extensively engaged with” had indicated they were not averse to it.

Abax portfolio manager Anthony Sedgwick said the investment firm had initially bought into Imperial as it was attracted to its portfolio of assets, as well as the group’s “gateway to Africa” strategy. “We thought that was a very clever direction,” he said. “It appears not only we thought that way.”

Sedgwick said while it may have been possible to “haggle” for a slightly improved price, the offer was a fair one.

PSG Asset Management was the first major holder to publicly question the commercial merit of the proposed transaction from DP World. The transaction shows that the valuations of SA shares are enticing to foreign investors, despite a weak economy, policy uncertainty and political risks underscored by the billions of rand of damage wrought by the riots in July.

The transaction, which has the backing of the board and management led by CEO Mohammed Akoojee after an evaluation by an independent expert, does not reflect

Imperial’s potential for patient investors, according to PSG, which holds a 7.5% stake in the company.

Imperial has said the buyout fits with its growth ambitions, and it is seeking to capitalise on its extensive network of warehouses in more than 20 countries to deliver products in Africa, a continent experiencing population growth and rising urbanisation.

DP World’s large footprint in Africa includes Senegal, Mozambique, Somaliland, Angola, Rwanda, Algeria and Egypt.

It has earmarked more than $2bn for investment in coming years in new capacity in Senegal, the Democratic Republic of the Congo, Angola, Somaliland and Mali.

It moves one in 10 of the world’s shipping containers.

Ahead of the vote, the group’s shares were trading 0.18% higher, and in afternoon trade on Friday were up 0.7% to R62.96. The group’s shares have risen two-thirds so far in 2021, having gained about a third since the deal was first announced.

DP WORLD MOVES ONE IN 10 OF THE WORLD’S SHIPPING CONTAINERS

FRONT PAGE

en-za

2021-09-20T07:00:00.0000000Z

2021-09-20T07:00:00.0000000Z

https://bdmobileapp.pressreader.com/article/281539409094430

Arena Holdings PTY