Imperial looks to unbundle logistics, vehicles
LISTED transport and mobility group Imperial Holdings has commenced a process to determine the viability of unbundling and separately listing its logistics and vehicle businesses. Chief executive Mark Lamberti said the board would em bark on due consultation with relevant stakeholders. L amber ti, became group chief executive of Imperial in 2014 and was previously involved in the unbundling of Woolworths, Truworths and Massmart from Wooltru.
During the current financial year to end June, Imperial’s logistics division, which comprises of South Africa, Africa and international businesses, generated revenue of R50.67 bn and operating profit of R2.76bn. Motis, Imperial’s motor vehicle import, distribution, retail, rental, aftermarket parts and vehicle related financial services, grew revenue to R66.54bn and operating profit of R3.3bn during the period.
Imperial embarked on a major restructuring in late 2014.
Lamberti said they had directed their efforts to enhancing the sustainable competitive position of group subsidiaries.
He said this had entailed two major initiatives: an aggressive disposal and acquisition programme and divisional and company leaders more accurately defining their market, product and customer focus and thereafter configuring those capabilities necessary to render competitive advantage, growth and returns.
Lamberti also claims the disposal and acquisition programme was to agglomerate a portfolio of companies whose sectoral focus and common operating capabilities would ensure the creation of intragroup value for stakeholders and simultaneously the definition of the value proposition that each client facing company would require to compete and win its chosen markets. He said initiatives had resulted in the disposal of 42 businesses and 52 properties that were under-performing, Lamberti added that the concurrent acquisition programme entailed the investment of R5.4bn to acquire 15 companies that generated revenue of R13.7bn and operating profit of R880 million in their first full year of operation. Lamberti said Imperial anticipated solid operating and financial results in the next financial year subject to stable currencies in the global economies and South Africa retaining its investment grade. Shares in Imperial rose 6.11percent yesterday with a high of 20 000.