Dubai-based port operator DP World said it has made a cash offer of 12.7 billion rand ($890 million) to acquire all the outstanding shares of Johannesburg JSE-listed Imperial Logistics.
The offer represents a premium of nearly 40 percent to the Imperial’s share price as of 7 July 2021, DP World said in a statement Thursday on Nasdaq Dubai, where its shares trade.
The transaction, subject to Imperial’s shareholder and other regulatory approvals, is expected to close in Q4-2021 or Q1-2022, the port operator said.
Imperial, which will be de-listed after the acquisition, will give DP World a “significant footprint in the high-growth Africa market, adding new capabilities” and relationships with cargo owners.
The acquisition will be funded from existing available resources, DP World said. The company has said it plans to its leverage target of below 4.0x net adjusted debt/EBITDA (earnings before interest, tax, depreciation and amortisation) ratio by the end of 2022.
Last week, DP World fully acquired the US-based logistics provider Syncreon for an enterprise value of $1.2 billion, which also will be self-funded.
(Writing by Brinda Darasha; editing by Mily Chakrabarty)
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© ZAWYA 2021