UAC Sells 43% DP World Stake to TGI, Exiting Logistics

• UAC of Nigeria Plc has agreed to sell its entire 43 percent stake in DP World Logistics Limited to 22 Plus Invest Limited, a TGI Group member.
• The transaction was officially announced via a filing submitted to the Nigerian Exchange Limited by UAC's Company Secretary and Group General Counsel.
• Completion of the share sale is conditional upon obtaining all necessary regulatory approvals.
• UAC's Group Managing Director, Fola Aiyesimoju, anticipates TGI will be a strong long-term partner, fostering continued growth in Nigeria's logistics sector.
• TGI Group's Vice Chairman, Farouk Gumel, stated the acquisition aligns with their goal to reshape African trade by combining DP World's global reach with TGI's distribution strength.

The completion of this DP World Logistics Limited acquisition is contingent upon securing all necessary regulatory approvals, a standard requirement for transactions of this magnitude in Nigeria.

UAC of Nigeria Plc has announced its agreement to divest its entire 43 percent shareholding in DP World Logistics Limited, a company previously known as MDS Logistics Limited. The purchaser in this significant UAC of Nigeria Plc share sale is 22 Plus Invest Limited, an entity affiliated with the Tropical General Investments (TGI) Group. This transaction marks a notable shift in ownership within Nigeria's logistics landscape.

The official disclosure of this UAC sells 43% DP World stake TGI deal was made through a formal filing submitted to the Nigerian Exchange Limited. The document, dated Thursday, was signed by Ayomipo Wey, who serves as both the Company Secretary and Group General Counsel for UAC of Nigeria Plc, confirming the details of the proposed acquisition. The completion of this DP World Logistics Limited acquisition is contingent upon securing all necessary regulatory approvals, a standard requirement for transactions of this magnitude in Nigeria.

Commenting on the strategic move, Fola Aiyesimoju, the Group Managing Director of UAC of Nigeria Plc, highlighted the collaborative history between UAC and DP World's management, which has fostered substantial growth and expansion for the logistics firm over the years. Aiyesemoju expressed confidence that the TGI Group, upon finalizing the 22 Plus Invest Limited UAC deal, will prove to be a robust long-term partner for DP World, its leadership, and its workforce. He emphasized TGI's deep market understanding and proven track record in developing businesses across Nigeria, anticipating continued growth and an enhanced contribution to the nation's vital logistics sector.

From the buyer's perspective, Farouk Gumel, the Vice Chairman of the TGI Group, articulated that this strategic acquisition aligns perfectly with the group's broader ambition to transform trade and supply chain operations throughout Africa. Gumel noted that the transaction is designed to leverage DP World's extensive global reach in conjunction with TGI's considerable distribution capabilities, thereby creating a powerful synergy in the African market. This MDS Logistics Limited sale Nigeria represents a strategic consolidation in the sector.

The requirement for requisite regulatory approvals underscores the importance of compliance and oversight in major corporate transactions within Nigeria. For lawyers advising on M&A in Nigeria, this case exemplifies the critical role of obtaining necessary clearances from relevant authorities before a deal can be fully consummated. The Nigerian Exchange Limited filing UAC made serves as a public declaration of intent, but the actual transfer of ownership remains pending official sanction.

This transaction also highlights ongoing trends in foreign investment and consolidation within key Nigerian industries, particularly the logistics sector. Compliance officers should monitor such developments, as they often signal shifts in market dynamics, competitive landscapes, and potential regulatory scrutiny. The involvement of a global player like DP World, and its subsequent partial acquisition by a prominent local group, illustrates the evolving nature of ownership and strategic partnerships in the country's economic landscape.

This divestment by UAC of Nigeria Plc and the subsequent acquisition by 22 Plus Invest Limited is significant for several reasons. It represents a strategic realignment for UAC, allowing it to streamline its portfolio, while simultaneously strengthening the TGI Group's footprint in the crucial logistics and supply chain sector. The logistics industry is a backbone of economic activity, and changes in ownership of key players can have ripple effects on efficiency, pricing, and service delivery across various sectors.

Furthermore, the emphasis placed by both UAC and TGI on the future growth and contribution to Nigeria's logistics sector suggests a shared vision for enhancing infrastructure and operational capabilities. This deal could lead to increased investment, improved service quality, and potentially more competitive offerings in the market, ultimately benefiting businesses and consumers reliant on efficient supply chains. The transaction underscores the dynamic nature of M&A in Nigeria, particularly in sectors vital for national development.

Lawyers advising on M&A in Nigeria should note this significant transaction in the logistics sector, particularly regarding the regulatory approval process for large shareholding sales. Compliance officers should be aware of the ongoing consolidation and foreign investment trends in key Nigerian industries.

Source: Original reporting via Punch Newspaper