UAC Reduces Stake In MDS Logistics, Takes In $2.4m
UAC of Nigeria Plc is to realise $2.4 million from the sale of eight per cent of its equity in MDS Logistics Limited, a subsidiary where it controls 51 per cent shareholding. The shares will be acquired by Imperial Logistics to raise its holding from 49 per cent to 57 per cent.
In notification to the Nigerian Stock Exchange (NSE) yesterday, UAC of Nigeria Plc said under the terms of transaction, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash.
Commenting on the development, Group Managing Director, Fola Aiyesimoju, said: “The transaction is an important milestone for UAC and consistent with our strategy of working closely with partners in empowering best-in-class management teams. Since the commencement of the partnership in 2013, we have been impressed by Imperial Logistics’ operational excellence in warehousing, distribution and transport. We look forward to greater integration between MDS and the broader Imperial Logistics platform as we strive to deliver value to clients.”
Also speaking, Chief Executive of African Regions for Imperial Logistics Johan Truter, said: “Core to Imperial Logistics’ strategy is working with strong partners as we seek to expand our businesses across Africa. We consider Nigeria to be a strategically important market and are excited to continue our partnership with UAC to grow MDS and expand its service offering to clients.”
Similarly, Managing Director, MDS’ Taiwo Ajibola said: “We at MDS remain focused on leveraging our assets, technology and capabilities to deliver value to our clients. We will continue to benefit from the strengths of our shareholders, Imperial Logistics and UAC.”
Imperial Logistics is mainly an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics and distributorship – customised to ensure the relevance and competitiveness of its clients. The group is listed on the Johannesburg Stock Exchange in South Africa and employs over 25,000 people in 32 countries.
MDS is a leading integrated logistics services provider. Through its network of warehousing and distributions assets, MDS links manufacturers with customers in more than 400 cities and villages across Nigeria. MDS is a critical supply chain and distribution partner to some of Nigeria’s leading corporates.
Meanwhile, the stock market remained bearish for the second day as the NSE All-Share Index fell by 0.32 per cent, while market capitalisation shed N43.3 billion to close at N13.4 trillion.