‘Most investors back Imperial bid’
• One shareholder, PSG, has said publicly that a R12.7bn bid from Dubai Ports World undervalues Imperial Logistics
Imperial Logistics, whose management has recommended acceptance of a R12.7bn takeover offer from Dubai Ports World, is confident that opposition from its fourth-biggest investor will not derail the transaction. Ahead of a vote on Friday, Imperial said the majority of shareholders had expressed support for the transaction.
Imperial Logistics, whose management has recommended acceptance of a R12.7bn takeover offer from Dubai Ports World, is confident that opposition from its fourthbiggest investor will not derail the transaction.
Ahead of a vote on Friday, Imperial said the majority of shareholders had expressed support for the transaction. PSG Asset Management, part of the investment giant with the same name headed by CEO Piet Mouton, said the DP World offer of R66 a share, a nearly 40% premium to the price before the bid was made, is too low.
Imperial said it had undertaken a “robust engagement process” with its shareholders regarding the DP World offer.
“The feedback Imperial received thus far is that the majority of our shareholders indicated they are not averse to the transaction,” Esha Mansingh, the company’s executive vicepresident for corporate affairs and investor relations, said.
PSG Asset Management was the first major holder to publicly question the merit of the proposed transaction, the latest one to show that the valuations of SA shares are enticing to foreign investors, despite a weak economy, policy uncertainty and political risks highlighted by wide-scale looting in July.
The bid came a month after Heineken, the world’s secondlargest beer maker, disclosed it had approached liquor maker Distell about a potential tie-up.
If PSG’s stance gains wider support, it could build up momentum for a slightly improved offer.
The transaction, which has the backing of the board and management led by CEO Mohammed Akoojee after an evaluation by an independent expert, needs 75% of shareholders to vote in its favour. However PSG, which holds 7.5%, said the transaction does not reflect Imperial’s potential for patient investors.
If approved, the Imperial deal will hand DP World a company in the middle of deploying cash raised from the sale of businesses in Europe to support its ambitions of becoming a “gateway to Africa” with a full range of transport services.
Imperial’s largest single-shareholder, the Public Investment Corporation, whose biggest client is the Government
Employees Pension Fund, said it was continuing with internal processes in considering it. It holds 11.3%.
The group’s second-biggest shareholder, UK-based savings and investment company M&G Investments with just under 11%, did not immediately respond to requests for comment. Abax Investments, with about 4%, has previously publicly expressed support for the deal. Abax portfolio manager Anthony Sedgwick said on Monday the firm did not share PSG’s view.
Imperial’s shares traded in a narrow range and were 0.44% lower at R62.79 on Monday afternoon. Since the announcement of the DP World bid, the group’s shares have risen by just under a third.
IF PSG’S STANCE GAINS WIDER SUPPORT, IT COULD BUILD UP MOMENTUM FOR A SLIGHTLY IMPROVED OFFER