UAC Exits DP World Logistics, Sells Entire 43% Stake To TGI Group

UAC of Nigeria Plc is exiting its investment in DP World Logistics Limited after reaching an agreement to sell its entire 43 percent shareholding to 22 Plus Invest Limited, a member of Tropical General Investments Group.

The transaction will end UAC’s equity participation in the logistics company formerly known as MDS Logistics Limited and introduce TGI Group as a major local partner alongside global logistics operator DP World.

UAC disclosed the agreement in a regulatory filing to the Nigerian Exchange, saying completion remains subject to the required regulatory approvals.

Financial terms of the transaction were not disclosed.

The disposal represents a significant portfolio move for UAC, which has held the logistics investment as an associate while building a broader group of businesses across consumer products, food, paints, restaurants, animal feeds and real estate.

DP World Logistics has evolved from MDS Logistics following changes in its ownership and strategic direction.

UAC’s decision to sell its entire interest means the Nigerian conglomerate will no longer have an equity position in the logistics operation once the transaction is completed.

For TGI Group, the acquisition provides an opportunity to deepen its exposure to Nigeria’s logistics and supply-chain industry.

TGI has substantial operations across agriculture, food processing, fast-moving consumer goods, manufacturing, distribution, chemicals, poultry, real estate and financial services.

The group has operated in Nigeria and other West African markets for more than four decades and has developed extensive distribution networks serving its portfolio of businesses.

Acquiring UAC’s 43 percent interest could therefore give TGI a stronger position in a logistics platform connected to DP World’s international network.

DP World operates ports, terminals and logistics infrastructure across multiple global markets, giving the partnership a combination of international logistics capabilities and TGI’s domestic distribution footprint.

The transaction also comes at a time of increasing investment in Nigeria’s logistics infrastructure as businesses seek to reduce the cost and complexity of moving raw materials and finished products across the country and into export markets.

Fola Aiyesimoju, Group Managing Director of UAC, said the company had worked with DP World’s management over the years to support the expansion of the logistics business.

UAC expects TGI to provide a strong long-term partnership for the company following completion of the transaction.

For UAC, the disposal also provides another indication of active portfolio management as management concentrates capital and resources across businesses where it sees opportunities to build stronger market positions.

The conglomerate has been reshaping its portfolio through acquisitions, disposals and consolidation.

Its current businesses include packaged foods and beverages, paints, animal feeds and other edibles, quick-service restaurants and real estate.

The company has also recently expanded its exposure to Nigeria’s food and beverage industry, making the exit from DP World Logistics noteworthy within its broader capital-allocation strategy.

The logistics disposal transfers UAC’s minority interest to a company affiliated with another large Nigerian-focused conglomerate rather than altering DP World’s underlying role in the business.

TGI Vice Chairman Farouk Gumel said the proposed investment would combine the group’s knowledge of Nigerian markets and distribution infrastructure with DP World’s international logistics capabilities.

The partnership could provide TGI with infrastructure that complements its existing manufacturing and distribution operations while giving DP World another locally established strategic shareholder.

Nigeria’s logistics industry remains an important component of operating costs for manufacturers, importers, exporters and retailers.

Congestion, road infrastructure constraints, warehousing limitations and the cost of moving cargo between ports and inland markets have historically increased supply-chain expenses.

Large operators with integrated warehousing, transport and distribution capabilities are therefore positioned to play an increasingly important role as Nigeria expands manufacturing and regional trade.

The UAC transaction also comes as DP World pursues a broader expansion of its interests in Nigeria.

Separately, the global logistics company has entered an investment framework with the Ogun State Government for the proposed Gateway Deep Seaport and Blue Marine Special Economic Zone, projects expected to attract more than $7 billion in initial investment.

The two developments are separate transactions, but together they underline DP World’s growing focus on Nigeria’s maritime and logistics infrastructure.

For TGI, acquiring UAC’s stake provides exposure to an existing logistics operation while its new partner continues to pursue additional infrastructure opportunities in the country.

The final ownership structure will take effect only after the transaction receives the necessary regulatory approvals.

UAC has not disclosed how much TGI will pay for the 43 percent holding or the valuation placed on DP World Logistics under the agreement.

The absence of a disclosed consideration means the immediate financial impact on UAC cannot yet be determined from the regulatory announcement.

Once completed, however, the transaction will mark UAC’s full exit from DP World Logistics and transfer its entire 43 percent interest to TGI Group.

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