Imperial names well-connected Afropulse as BEE partner in R200m deal
Afropulse chair Phumzile Langeni is one of Cyril Ramaphosa’s four envoys in his $100bn investment drive
Transport and logistics group Imperial has named Afropulse as its broad-based black economic empowerment partner in a R200m deal.
Afropulse is an investment, investor relations and corporate advisory company, led by businessperson Phumzile Langeni, who is the executive chair.
Langeni is also one of the four special envoys appointed by President Cyril Ramaphosa to help SA attract $100bn worth of investments over a five-year period.
Afropulse will subscribe for 25% interest in the soon-to-be-set-up vehicle, which will house energy, mining and chemicals businesses within Imperial Logistics SA.
The proposed transaction will take effect in the third of the financial year.
The initial target was to sell 30% of Imperial Logistics South Africa to a BEE partner, but the company said this was taking longer than anticipated because of the complexities involved.
Imperial is in the process of unbundling its vehicle operations, which will be separately listed in November, in a move that it hopes will unlock value for shareholders.
In the same statement, the company noted that trading conditions were challenging in the first quarter of its financial year, within both the vehicle and logistics businesses, though it said they performed “satisfactorily”.
The share price fell nearly 5% to R162.65 in early trade on the JSE on Tuesday, valuing the company at R33bn.
Depressed consumer demand and lower volumes in South Africa weighed on logistics businesses, as did the “significantly lower” water levels on the River Rhine that affected shipping operations in Germany, among other factors.
The performance of Motus, which houses vehicle operations, was affected by competitive vehicle pricing and high volumes in entry-level and small SUV vehicle sales in SA, as consumers continue to trade down from luxury vehicle brands.