Pioneer gets nod to acquire Unifreight

industry player Unifreight Swift.
Through the US$7,2 million deal, Pioneer seeks to reposition itself as a leading player in the transport and logistics business.
Sources told Herald Business CTC had given its blessings and Pioneer was now awaiting a few more approvals from other regulatory authorities.
These include the Reserve Bank of Zimbabwe and the Zimbabwe Stock Exchange and they are expected decide on the matter in the next few weeks.
The Unifreight Swift transaction is also subject to getting the thumbs up from the Ministry of Youth Development, Indigenisation and Empowerment.
Pioneer chief executive Mr Albert Ushe could neither deny nor confirm the CTC approval but hinted there could have been an approval from one regulator.
“I am currently not at work. I will only be in the office sometime next week. I am not really sure, but there could have been one approval,” he said.
Efforts to get a comment from CTC were fruitless yesterday.
But Herald Business has it on good authority that CTC has given the green light for the take- over by Pioneer of Unifreight assets, brand and liabilities.
Once all the regulatory approvals are obtained Pioneer will issue 514 974 875 shares of US$0,008 each for the purchase consideration of US$4 million.
To enable the issuance of new shares Pioneer will raise its authorised share capital from 600 million ordinary shares to 1,4 billion ordinary shares.
The listed firm will also take up US$900 000 Unifreight debt secured on trucks, US$1,5 million for the purchase of the Swift brand over five years and US$711 000 for Unfreight’s IT systems payable over three years. After completing the acquisition the transport and logistics firm will see the value of its asset base increase by US$12 million to US$30 million.
Pioneer will acquire trucks, trailers, vehicles and equipment from Unifreight.
Its bid is meant to help the group claw back market share lost during the decade of economic instability. The more stable economic and political environment has seen the group start to make profit.
This will particularly be enhanced by the addition of a consolidations business it had shed at the height of the economic downturn.
Pioneer had closed its consolidations business following losses posted by its now defunct consolidations unit, Clan Transport, in 2009 and 2010.
An offer to Unifreight was made on the understanding that the firm has a diverse branch network and a strong Swift brand with appropriate size and mix.