Photo by: Bloomberg
JSE-listed Imperial Holdings has sold off its 65% stake in Imperial Logistics International subsidiary Neska to Port Authority Häfen und Güterverkehr Köln (HGK) in Cologne, Germany, for €75-million.
With its established capability and scale, HGK, which was controlled by Stadtwerke Köln and currently owned 35% of Neska, could “better advance” the subsidiary as it faced growing competition from established players with more scale, a better market positioning and pricing power.
Neska, the growth of which would be limited under Imperial, delivered operating profit of €7.2-million, with a net asset value of €14-million, in the financial year ended June 30.
The proceeds from the proposed transaction, which was expected to conclude in July 2016, would be used to reduce Imperial’s short-term debt and expand the group’s core businesses.
The deal remained subject to conditions precedent, including public approval procedures and unconditional regulatory approvals in all the relevant jurisdictions.