ZIMBABWE Stock Exchange (ZSE)-listed Unifreight Africa Limited, say it has entered into a sale of shares agreement for the acquisition of an 86,67 percent shareholding in Cheetah Express Logistics valued at US$2,08 million.
Cheetah Express is the sole authorised Global Service Participant for FedEx Express in Zimbabwe.
The acquisition has been partially funded through US$210,000 in internally generated cash resources, with the remaining US$1,870,000 to be funded from existing overdraft facilities with 2 (two) local financial institutions.
The facilities, which are part of the company’s existing borrowing arrangements, bear a fixed interest rate of 10,5 percent per annum, are repayable over a three-year term, and are secured by a lien over the company’s fleet of trucks.
In an acquisition announcement to shareholders. Unifreight said the acquisition marked a significant step in Unifreight’s growth strategy, providing immediate entry into high-growth express courier segment and strengthening Zimbabwe’s connection to the global economy.
“The acquisition will be effected through the purchase of both direct and indirect shareholdings held by the seller, resulting in Unifreight becoming the majority shareholder in Cheetah Express Logistics,” the transport and logistics firm said.
“The total consideration for the acquisition is US$2,080,000, representing approximately 15.7 percent of the company’s market capitalisation on the Zimbabwe Stock Exchange,” Unifreight said.
The transaction diversifies Unifreight’s revenue streams, improves operational efficiencies, and strengthens its position as a comprehensive, end-to-end logistics provider in Zimbabwe. “As Swift, Unifreight’s customer-facing brand, marks 80 years of operations in Zimbabwe, this acquisition represents a significant milestone in the group’s continued growth,” said Unifreight.
In compliance with the ZSE Listings Requirements, specifically the Securities Exchange Rules Statutory Instrument 134 of 2019 (the “Listings Rules”), this transaction qualifies as a Category three transaction under Section 253.
Accordingly, the announcement was issued in line with the provisions of Section 258 of the listing’s rules.
The constitutive documents of the acquired subsidiary will be amended as necessary to ensure compliance with the Tenth Schedule, in accordance with section 258(4) of the Listing Rules.
Unifreight Africa Limited is a leading transport and logistics group. Its customer-facing brand, Swift, was founded in 1946 and has spent eight decades building one of Zimbabwe’s most trusted logistics networks.
Unifreight offers comprehensive logistics and freight services to sub-Saharan Africa through its network of leading brands which specialize in bulk freight transport; bulk liquids and specialized products; collection and distribution; volumetric and household removals; contract hire; national and international courier services; cross-border freight and regional trade corridor solutions; and fourth-party logistics and supply chain management.
