Cape to Cairo?

Cape to Cairo?

Fast growing and acquisitive logistics specialist Santova has headed south … ironically in a bid to bolster business north of South Africa’s borders. The JSE listed company last month snapped up small Milnerton-based AEMC Trading Agency – an unexpected move that could well see Santova snagging more cross border business opportunities in fast growing African economies.

Santova – which has existing supply chain operations in Cape Town – confirmed it would pay a maximum purchase consideration of R1.6m for AEMC – a price tag that depends on the business achieving future profit warranties. While this is by no means the biggest takeover deal, the transaction – according to Santova – is of strategic importance.

Santova CEO, Glen Gerber, said AEMC was expected to have a positive impact on the company’s results – but advised that the full effects would only be felt in future financial periods and not materially affect financial results for the 2016 financial year end.

AEMC offers a point to point solution for clients moving cargo into Africa - including cross border transport, warehousing and logistical solutions.

Gerber said the acquisition of AEMC was part of Santova’s stated strategy to expand its services and footprint into Africa.

“It will have a synergist impact on Santova’s already established projects capability,” Gerber said.

In this regard it is probably worth noting AEMC also claim specialised knowledge of the oil and gas, transportation and transmission systems, mining and construction projects as well as retail, hotel, restaurant and food outlet sectors.

Exactly how AEMC fit into Santova’s African ambitions will be fascinating to gauge in the months ahead. The company recently opened an office in Ghana, hoping to capitalise on that country’s strategic location in the sub-region of Africa (bordered by Cote d’Ivoire in the west, Burkina Faso to the north, Togo to the east and the Gulf of Guinea to the south.)

Essentially this means Santova will be in a position to manage the movement of goods in these regions while also providing avenues for transit cargo to land-locked areas in the northern part of Ghana.

By Jenni McCann 

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