Corporate Financing Solutions
Standard Bank played an integral role in supporting Imperial Holdings to create two separate businesses in a R30bn deal that will see the newly-established Imperial Logistics and Motus businesses separately listed on the JSE in November 2018.
Imperial Holdings has a proud history, having spent more than seven decades operating at the heart of South Africa’s logistics and automotive landscape. In recent years, the transformation and development of the group has been directed at value creation through strategic clarity, managerial focus and shareholder insight.
A decision to evolve
Following a strategic review, Imperial Holdings recognized that it's logistics and diversified automotive operations would benefit from limited operational synergies and offer enhanced growth potential if they were allowed to pursue independent strategies as standalone businesses. As a result, the decision was made to establish them as two separate entities, individually listed on the JSE:
- Imperial Logistics – an integrated outsourced logistics service provider with a diversified presence across Africa and Europe;
- Motus – a leading diversified (non-manufacturing) automotive business, focusing on importing and distribution, retail and rental, motor-related financial services and after-market parts, with a select international presence in the UK and Australia.
In order to achieve this goal, a fundamental restructuring was required – operationally, legally and financially. In addition to securing buy-in and engagement within the organization, and the various regulatory implications that had to be navigated, Imperial Holdings needed a strong and committed financial partner to support them in realising their strategic ambitions.
Standard Bank’s role in the deal
Standard Bank’s proven capability and expertise across multiple product areas, including Advisory, Equity and Debt Capital Markets, Debt Advisory and Debt Arranging, Transactional Products and Services and Exchange Control made us Imperial’s ideal choice of partner on this complex transaction.
As well as advising on optimal capital restructuring, we played a significant role in implementing the actual capital structure itself. We also provided significant balance sheet support, acted as debt advisor on the non-offshore debt portion of the deal and executed the buyback of listed bonds and preference shares.
Supporting Africa’s market leaders
The complexity of this landmark transaction further demonstrates Standard Bank’s ability to deliver seamless cross-functional solutions that manage client risk while building operational and capital capacity in compelling stand-alone structures.
We are proud to have supported Imperial Holdings in reaching this key milestone in the group’s strategic evolution and we look forward to enabling these two market leaders in the next phase of their growth journey.