Imperial Logistics : Proposed introduction of a 25% B-BBEE shareholding in Imperial Logistics Group South Africa proprietary limited

Proposed introduction of a 25% B-BBEE shareholding in Imperial Logistics Group South Africa proprietary limited

23 April 2021

The board of directors of Imperial is pleased to announce that it has entered into transaction agreements with B-BBEE shareholders (Afropulse, Willowton and Converting Trade), in relation to a proposed transaction that would provide the B-BBEE shareholders with an opportunity to participate in a 25% B-BBEE shareholding in Imperial Logistics Group South Africa Proprietary Limited (ILSA - the Imperial company which subsequent to the transaction will house most of the Group's South African operations).

Converting Trade, (of which Afropulse holds 61% and Willowton holds 39%) currently holds 25% shareholding in Imperial Logistics Advance Proprietary Limited (ILA). As a result, ILA is a more than 51% black-owned and more than 30% black woman-owned enterprise. Both Afropulse and Willowton are black women owned enterprises. Willowton is an affiliate of the Willowton Group, which is one of the leading FMCG manufacturers in South Africa.

'With transformation being a key focus for the Group, Imperial's B-BBEE policies have been developed to ensure that measurable progress is made towards black economic empowerment. The transaction will ensure significantly enhanced B-BBEE ownership for the majority of Imperial's South African operations and reiterates our commitment to sustainable empowerment and transformation,' says Mohammed Akoojee, Imperial's Group CEO.

'Improving the B-BBEE ownership and status of Imperial's South African operations is critical for the future prospects of the Group given its exposure to the South African market as part of our 'Gateway to Africa' strategy. This transaction will also enhance Imperial's competitiveness and appeal to our clients and customers in South Africa, which will contribute to sustaining current earnings and achieving future growth,' Akoojee explains.

The effective B-BBEE ownership of ILSA post implementation of the transaction will be more than 51%, with more than 30% black women ownership.

The transaction comprises of Converting Trade disposing of its 25% shareholding in ILA, through a series of transactions, and on a value-for-value basis, acquiring a 9.9% shareholding in ILSA, and a subscription by Willowton and Afropulse for new shares in ILSA for a consideration of ZAR502.8 million in the aggregate (post the application of the 20% discount provided by Imperial) to acquire an additional 15.1% shareholding in ILSA.

The effective B-BBEE shareholding of Afropulse and Willowton in ILSA post the transaction will be 12.6% and 12.4% respectively, 25% in aggregate.

The regulatory SENS announcement that includes more information about the transaction is available on Imperial's website https://www.imperiallogistics.com/sens.php.

Media Queries:
Esha Mansingh
Executive Vice President: Corporate Affairs & Investor Relations
[e-mail]

Melissa Arjoonan
Vice President: Marketing & Communications
[e-mail]

Notes to the editor:

About Imperial:
Imperial is an African focused provider of integrated market access and logistics solutions, with a focus on the following key industries - healthcare, consumer, automotive, chemicals, industrial and commodities. Imperial takes its clients and principals' products to some of the fastest growing and most challenging markets in the world. Ranked among the top 30 global logistics providers and listed on the JSE in South Africa, Imperial seeks out and leverages new technology to deliver innovative, end-to-end solutions. Through its significant African footprint and international expertise, and with the support of its 25 000 people, Imperial's purpose is connecting Africa and the world - and improving people's lives with access to quality products and services. For more information, visit www.imperiallogistics.com.

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