Unifreight disposes of two entities
LOGISTICS group, Unifreight Africa Limited has disposed of two of its subsidiaries — Birmingham Investments and Tredcor to Zimplow Holdings Limited, a leading agricultural and mining implements manufacturer.
Prior to the disposal deal, Unifreight controlled 51 percent shareholding in Tredcor while the group owned 100 percent shareholding in Birmingham.
The disposal of the two assets was meant to improve the logistics group’s balance sheet.
In a statement accompanying financial results for the half-year ended September 30, 202, Unifreight said it agreed with Zimplow to dispose of Tredcor for $67,6 million payable in the form of 18 399 564 newly issued Zimplow ordinary shares.
“The disposal is effective 30 June, 2021. Due to the associate being loss making, the equity accounted investment in associate value is nil (2020 nil).
“The fair value of the Zimplow shares as at 30 June 2021 is 964,22 cents per share, which translates to $177,4 million being the fair value of the consideration,” it said.
On the transaction involving Birmingham Investments, Unifreight said the disposal was again effective June 30, 2021.
“At 7 August 2020, the board of directors resolved to dispose of its wholly-owned subsidiary Birmingham Investments Limited.
“On 22 September 2020, an agreement was signed with Zimplow Holdings Limited in terms of which the group will dispose its entire shareholding in Birmingham for a purchase consideration of $57,984 million payable in the form of 15 774 446 newly issued Zimplow ordinary shares.
“The fair value of the Zimplow shares as at 30 June 2021 is 964,22 cents per share, which translates to $151,811 million being the fair value of the consideration,” said Zimplow.
Despite the challenging trading environment during the half-year under review, the group said it managed to maintain its course in going from good to great and was able to exceed budget in both revenue and volumes.
“We have built a firm foundation and all the fundamentals are in place for a bright future for the business.
“Cumulative second quarter sales in real terms were ahead of the budget by 14 percent and way ahead of prior year to 70 percent.
“What is a bit disappointing is that despite a dramatic increase in sales, US$ inflation has been rampant as a result, reduced margins — but we can be grateful that we are still profitable and profit margins are above industry norms,” said Unifreight. – The Chronicle
