FSG Signs Agreement to Acquire the Business and Certain Assets of Transit Freight Coordinators Group in South Africa
Acquisition furthers FSG’s corporate strategy of delivering the World to Africa
Significantly expands FSG’s operational capabilities in South and Sub-Saharan Africa
Adds substantial, established and licensed transportation business with a fleet of trucks, warehouse networks and associated support and maintenance facilities
JOHANNESBURG--(Business Wire / Korea Newswire) August 17, 2015 -- Frontier Services Group Limited (“FSG”) (SEHK: 00500), a publicly listed, transportation and logistics solutions provider in frontier markets with its operational headquarters in Nairobi, Kenya, today announced that it has entered into a Share Purchase Agreement whereby FSG will purchase the business and certain assets from a group of companies collectively referred to as Transit Freight Coordinators Group for consideration of ZAR 49 million.
Transit Freight Coordinators Group (”TFCG”), headquartered in Johannesburg, South Africa provides transportation and movement services for freight across road, rail, sea and air from its operational hubs in Johannesburg, Cape Town, Nelspruit (all in South Africa), Lusaka (in Zambia) and Harare (in Zimbabwe).
TFCG has expertise in cross-border freight movements within the 15-Nation Southern African Development Community (SADC), offering specialized modes of transportation through appointed freight controllers, via road, rail, air and/or sea. In addition to intra-South and sub-Saharan Africa distribution, TFCG can undertake the contracted movement of export shipments for delivery to and from points of manufacture to warehouses, incorporating all international consignment clearing requirements. This capability ensures seamless export/import service for customers within the SADC and international ports of destination.
TFCG was founded in 2003 by Robbie Forbes, who built the business into one of the continent’s premier ground transportation enterprises. “We saw FSG’s growth and new customer needs as something additive to our business. Their management, technology and customer pipeline are a fantastic distribution channel for new business and future growth together.” Mr. Forbes will remain in his management role with the business.
The acquisition furthers FSG’s stated strategy to provide a one-stop solution for transportation and logistics requirements throughout Africa. Gregg Smith, CEO of FSG, said, “Our acquisition of Transit Freight Coordinators Group marks another important step forward in FSG’s strategy of providing our customers with complete logistics solutions across the African continent. We are particularly proud to be doing it with the proven management, leadership and expertise that we see in the TFCG team.” Mr. Smith further stated that, “With Africa expected to be home to 25% of the World’s population by 2050, we believe that by investing now to deliver the World to Africa - and Africa to the rest of the World - is not just good business, but a necessary service solution for the people of this very important continent.”
The transaction is subject to the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Hong Kong Stock Exchange’s listing rules.
About Frontier Services Group:
Frontier Services Group Limited (“FSG”) (SEHK: 00500) is a publicly listed company on the Hong Kong Stock Exchange with its headquarters in Nairobi, Kenya. FSG provides complete logistics solutions in frontier markets with a particular focus on Africa. Serving sectors across oil and gas, mining and humanitarian relief organizations, FSG is able to support customer’s needs around moving goods, material and people in to, and out of, some of the fastest growing, but more difficult operating environments in a safe, reliable and cost-effective manner.
For Further Information Please Visit: www.FSGroup.com
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