Imperial Logistics will start its standalone future a week from today after it cleared the final hurdle to the unbundling of automotive group Motus.
Parent company Imperial Holdings said yesterday that the Takeover Regulation Panel had given the go-ahead ahead for the unbundling of Motus to shareholders on 22 October 2018. Following that, Imperial will start trading as Imperial Logistics on 5 December 2018.
The changes are the culmination of a four-year restructuring programme, which acting chief executive Mohammed Akoojee said was “among the most complex and ambitious undertaken in the SA market in recent times”.
The separation of its automotive and logistics businesses is aimed at giving shareholders the opportunity to participate directly in either group as Imperial had discovered there was an absence of operational synergies between the two. While Imperial Logistics counts businesses as clients, Motus is primarily consumer-facing. The two are already managed and reported on independently and the unbundling will allow them to access debt and equity markets separately.
Imperial Logistics has diverse operations across the continent and Europe and is expected to deliver sustainable revenue growth, enhanced profitability and a stable dividend. It’s ranked in the top 25 global third-party logistics providers. It has an established infrastructure and networks in 38 countries on five continents, with about 30,000 employees. It says its geographical spread and strong leadership make it a trusted partner to multinational clients and that its leading positions in regional markets provide a platform for sustainable growth. The enhanced financial flexibility a separate listing will give will also underpin its potential for acquisitions.
“As we look forward to a new chapter with Imperial Logistics and Motus being listed as separate entities, the key priorities of both management teams are to continue to position their companies as market leaders in their respective industries and to ensure that each delivers on its strategic, financial and operational objectives and targets over the next three to five years,” Akoojee said.
Standard Bank, which together with JP Morgan advised on the restructuring, said the separation had created “two new blue-chip standalone businesses, appropriately capitalised and focused on generating enhanced value for shareholders”.
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