Under the terms of the deal, Lonrho can acquire an additional six per cent stake of SA Independent Liner Services (SAILS) from existing shareholders over the next five years.
An African conglomerate with a portfolio of investments across the continent has paid US$6 million (£3 million) for a 45 per cent stake in a South African shipping line. Under the terms of the deal, Lonrho can acquire an additional six per cent stake of SA Independent Liner Services (SAILS) from existing shareholders over the next five years.
Ian Wicks will continue as the managing director of the acquired company. He comments: ‘The subscription by Lonrho signals a new chapter in the development of SAILS. This is an age-old industry and the links and support that SAILS has developed in its first year of operation will definitely grow and expand in the next two to three years.’
SAILS is a ship operator and shipping line based in Cape Town, South Africa, which ships freight to West Africa, Belgium, Germany, Holland and the UK. It works mainly with the automotive, chemicals, mining and agricultural industries.
Lonrho, which listed on AIM in 2001, specialises in infrastructure, transportation, support services and natural resources. The company’s recent investments include diamond prospector Nare Diamonds, uranium specialist Brinkley Mining, and Kenyan budget airline fly540.com.