UAC of Nigeria Plc has agreed to sell its entire 43 per cent stake in DP World Logistics Limited to 22 Plus Invest Limited, a member of the Tropical General Investments (TGI) Group, in a transaction that could reshape the ownership structure of one of Nigeria’s logistics businesses.
The proposed deal, announced in a filing to the Nigerian Exchange Limited on Thursday, marks UAC’s planned exit from its investment in DP World Logistics, formerly known as MDS Logistics Limited.
The filing was signed by Ayomipo Wey, Company Secretary and Group General Counsel of UAC of Nigeria Plc.
UAC said the transaction is not yet final, as completion remains subject to the receipt of the necessary regulatory approvals.
The deal brings together two established business groups with interests spanning different parts of Nigeria’s corporate and industrial landscape, while positioning TGI to take a larger role in the logistics and supply-chain sector.
UAC backs TGI as long-term partner
Commenting on the proposed transaction, UAC Group Managing Director, Fola Aiyesimoju, said the company had worked closely with DP World’s management over the years to support the logistics business as it expanded.
“UAC has worked closely with DP World’s management to support the significant growth and expansion of the Company over the years.
“We believe TGI, following completion of the proposed transaction, will be a strong long-term partner for DP World, its management and employees, bringing deep market knowledge and a strong track record of building businesses in Nigeria. We look forward to seeing the Company continue to grow and strengthen its contribution to Nigeria’s logistics sector.”
Aiyesimoju's comments underline UAC's confidence that the proposed change in ownership will provide continuity for the business while potentially opening another phase of expansion.
TGI eyes stronger logistics footprint
For TGI, the acquisition represents an opportunity to deepen its presence in the distribution and supply-chain ecosystem.
Farouk Gumel, Vice Chairman of TGI Group, said the proposed acquisition was consistent with the group's broader ambition to transform trade and supply-chain operations across Africa.
He highlighted the potential of combining DP World’s international network and capabilities with TGI’s established distribution platform in the Nigerian market.
The transaction would therefore bring together DP World’s global logistics reach and TGI’s local market knowledge and distribution capabilities, potentially strengthening the business’s position in Nigeria’s increasingly important logistics sector.
Regulatory approvals still required
Despite the agreement between the parties, the transaction has not yet been completed.
UAC said the proposed sale remains subject to obtaining the requisite regulatory approvals. The parties will therefore have to satisfy the relevant regulatory requirements before the transfer of UAC’s 43 per cent interest can be concluded.
Until completion, UAC remains the holder of the stake covered by the proposed transaction.
The announcement comes as logistics and supply-chain infrastructure remain critical to Nigeria’s trade and distribution networks, with companies increasingly seeking scale and operational efficiency across the movement of goods.
For UAC, the sale represents a further adjustment of its investment portfolio, while for TGI, the proposed acquisition could provide an expanded platform in a sector central to the movement of goods across Nigeria and the wider African market.