Africa’s Biggest Transport Company Starts Split of Auto Unit

JOHANNESBURG (Capital Markets in Africa) – Imperial Holdings Ltd., Africa’s largest transportation company by sales, moved forward with plans to list shares of its automotive division in Johannesburg as part of efforts aimed at improving prospects for the overall group.

In a strategy initiated by former Chief Executive Officer Mark Lamberti, Johannesburg-based Imperial has been gradually separating the vehicle and logistics businesses ahead of the proposed new listing. While the autos unit is focused mainly on South African car rentals and sales, the other division transports everything from pharmaceuticals around Africa to chemicals in Europe and employs 30,000 people in 33 countries.

The unbundling will be structured as an asset-for-share transaction and stock in the new company — called Motus Holdings — will be distributed to Imperial’s shareholders, according to a statement Thursday. The conglomerate’s shares fell 0.2 percent to 199.26 rand as of 1:08 p.m. in Johannesburg, valuing the company at 40.2 billion rand ($2.9 billion)

Lamberti was forced to quit in April after a court found him guilty of insulting an employee by calling her a “female employment equity” appointment. He’s been replaced by Osman Arbee, who will oversee the long-mooted separation before becoming head of Motus. Marius Swanepoel will take the CEO role at the renamed Imperial Logistics, to be succeeded by Chief Financial OfficerMohammed Akoojee next year.

Source: Bloomberg Business News