DP World to buy Imperial Logistics in $890m bet on Africa

DP World to buy Imperial Logistics in $890m bet on Africa

DP World plans to buy South Africa's Imperial Logistics Ltd. for $890m, in what the port operator said would be its most significant acquisition in Africa so far. "Imperial's business strongly complements DP World existing footprint in Africa and Europe," the Dubai-based company said, adding that the deal demonstrates long-term confidence in the South African economy and the wider regional market despite recent challenges. The privately-held company offered 66 rand ($4.60) per share, a 40 per cent premium to Imperial's last close. The shares surged as much as 36 per cent on Thursday, trading just below the offer price. Even with the rally, the stock still trades below a January 2018 high. DP World is one of the world's largest operators of marine ports and inland cargo terminals, stretching from gateways in London and Antwerp to hubs in Africa, Russia, India and the Americas. It has been on an acquisition spree as it attempts to become a more diversified, integrated logistics company. The company bought supply chain solutions provider Syncreon Holdings Ltd. last week for an enterprise value of $1.2bn. DP World also continues to look for ways to cut debt and is considering offering international investors a chance to