Business Reporter
Zimbabwe Stock Exchange listed TSL Limited is set to acquire a majority stake in Premier Forklifts, a Harare based company to complement its logistics division. TSL Limited is a conglomerate with interest in logistics, tobacco, agro inputs and properties. Its logistics division, BAK, one of the largest in the country – is involved in port handling, storage, distribution, transportation, contract management, car rentals and tours.
“As you may know, TSL owns one of the largest logistics companies in Zimbabwe and by acquiring Premier Forklift, it makes a lot of business sense since this will complement its logistics division,” said one source who requested not be identified.
“The company also needs forklift services for its auction floor (Tobacco Sales Floor.
“They have agreed on most of the critical issues and the deal looks certain,” the source added.
On Thursday last week, TSL issued a statement that the group intended to acquire a strategic business in transport and logistics within the next two months on the basis of a share swap arrangement.
The transaction will result in less than 2 percent equity dilution if concluded.
This means that the total consideration of the transaction using the group’s market cap would be circa. US$2,7 million.
At its last analyst briefing, chief executive Washington Matsaira said they now had a clearer understanding of the logistics business.
He said the group will expand the customer base and product range with greater focus on containing handling, freight forwarding, FMCG handling and distribution, bulk grain handling and distribution.
The group said it would search for the right technical partner.
Premier Forklifts are the official agents and distributors of Toyota, Clark and Kalmar Forklifts in Zimbabwe. They are also agents and distributors of BT Lifting Equipment, Bolzoni Aromo Clamps and Forklift attachments and various brands of forklift tyres.
Already, BAK Logistics has a fleet of forklifts ranging from one to four tonnes for hire.
The BAK logistics fleet is not only operational locally but also caters for the regional market.
The logistics business has remained one of the most profitable business under TSL.
During 2012 financial year, the division reported a 22,8 percent in revenue growth from US$11,7 million to US$14,4 million.