UAC’s Imperial Logistics Increases Equity In MDS Logistics In A 2.4 Million Dollars Deal

UAC of Nigeria Plc (“UAC or the Company”) wishes to inform The
Nigerian Stock Exchange (The Exchange), its shareholders and
stakeholders that the Company has entered into an agreement with
Imperial Logistics Limited (“Imperial Logistics”), under which Imperial
Logistics proposes to increase its shareholding in MDS Logistics Limited
(“MDS” or the “Company”) from 49% to 57%, by acquiring an additional
8% shareholding from UAC (the “Transaction”). The Transaction is
subject to relevant regulatory approvals.

Under the terms of the Transaction, Imperial Logistics will transfer
selected profitable contracts to MDS and pay USD2.4 million in cash.
The Transaction is based on a USD40 million equity value for MDS.
MDS is Nigeria’s leading integrated logistics services provider. Through
its network of warehousing and distributions assets, MDS links
manufacturers with customers in more than 400 cities and villages
across Nigeria. MDS is a critical supply chain and distribution partner to
some of Nigeria’s leading corporates.

Imperial Logistics is mainly an African and Eurozone logistics provider of
outsourced, integrated freight management, contract logistics and
distributorship – customised to ensure the relevance and
competitiveness of its clients. The group is listed on the Johannesburg
Stock Exchange in South Africa and employs over 25,000 people in 32
countries.

UAC is a holding company that owns businesses with some of Nigeria’s
strongest brands and widest distribution. UAC’s businesses are engaged
in the following sectors – packaged food and beverages, paints, logistics,
animal feeds and edible oils, quick service restaurants and real estate.
Johan Truter, Chief Executive of African Regions for Imperial Logistics
explains, “Core to Imperial Logistics’ strategy is working with strong
partners as we seek to expand our businesses across Africa. We
consider Nigeria to be a strategically important market and are excited to
continue our partnership with UAC to grow MDS and expand its service
offering to clients.”

Fola Aiyesimoju, UAC’s Group Managing Director said, “The Transaction
is an important milestone for UAC and consistent with our strategy of
working closely with partners in empowering best-in-class management
teams. Since the commencement of the partnership in 2013, we have
been impressed by Imperial Logistics’ operational excellence in
warehousing, distribution and transport. We look forward to greater
integration between MDS and the broader Imperial Logistics platform as
we strive to deliver value to clients.”

Taiwo Ajibola, MDS’ Managing Director said “We at MDS remain
focused on leveraging our assets, technology and capabilities to deliver
value to our clients. We will continue to benefit from the strengths of our
shareholders, Imperial Logistics and UAC.”