UAC of Nigeria Plc has entered into agreement with imperial Logistics Limited, under which imperial Logistic proposes to increase its shareholding in MDS Logistics Limited from 48 per cent to 57 per cent by acquiring an additional eight per cent shareholding from UAC.
The company said that the transaction is subject to relevant regulatory approvals.
A statement signed by Company Secretary/ Legal adviser ,UAC Godwin A. Samuel said that under the terms of the transaction, Imperial Logistics will transfer selected profitable contracts to MDS and $2.4 million in cash.
The transaction is based on a $40 million equity value for MDS.
MDS is Nigeria’s leading integrated logistic 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.
Imperial Logistic is mainly an African and Eurozone Logistics provider of outsourced, integrated freight management, contract logistics and distributorship accustomised to ensure the relevance and competitiveness of its clients.
Group Managing Director, UAC, Fola Aiyesimoju said, the transition 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.
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.