Business / Companies
Pioneer gets approval to acquire Unifreight
30 Aug 2011 at 23:29hrs | Views
THE Competition and Tariff Commission has reportedly approved the $7.2 million Pioneer Corporation Africa's deal to acquire fellow transport industry player Unifreight Swift.
It is believed that the Commission had given its blessings and Pioneer was now awaiting a few more approvals from other regulatory authorities, the Heral reported.
These include the Reserve Bank of Zimbabwe and the Zimbabwe Stock Exchange and they are expected decide on the matter in the next few weeks.
The Unifreight Swift transaction is also subject to getting the thumbs up from the Ministry of Youth Development, Indigenisation and Empowerment.
Pioneer chief executive Mr Albert Ushe could neither deny nor confirm the CTC approval but hinted there could have been an approval from one regulator.
The listed firm will also take up $900 000 Unifreight debt secured on trucks, $1,5 million for the purchase of the Swift brand over five years and $711 000 for Unfreight's IT systems payable over three years. After completing the acquisition the transport and logistics firm will see the value of its asset base increase by $12 million to $30 million.
Pioneer will acquire trucks, trailers, vehicles and equipment from Unifreight.
Its bid is meant to help the group claw back market share lost during the decade of economic instability. The more stable economic and political environment has seen the group start to make profit.
It is believed that the Commission had given its blessings and Pioneer was now awaiting a few more approvals from other regulatory authorities, the Heral reported.
These include the Reserve Bank of Zimbabwe and the Zimbabwe Stock Exchange and they are expected decide on the matter in the next few weeks.
The Unifreight Swift transaction is also subject to getting the thumbs up from the Ministry of Youth Development, Indigenisation and Empowerment.
Pioneer chief executive Mr Albert Ushe could neither deny nor confirm the CTC approval but hinted there could have been an approval from one regulator.
The listed firm will also take up $900 000 Unifreight debt secured on trucks, $1,5 million for the purchase of the Swift brand over five years and $711 000 for Unfreight's IT systems payable over three years. After completing the acquisition the transport and logistics firm will see the value of its asset base increase by $12 million to $30 million.
Pioneer will acquire trucks, trailers, vehicles and equipment from Unifreight.
Its bid is meant to help the group claw back market share lost during the decade of economic instability. The more stable economic and political environment has seen the group start to make profit.
Source - TH
