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Nqobile Bhebhe, [email protected]

LISTED logistics company, Unifreight Africa Limited, is negotiating a transaction that could significantly affect its financial position and share price amid indications it is considering establishing a new fourth-party logistics strategic business unit (SBU) as a revenue stream to subcontract its excess volumes to third-party transporters.
The company has long stressed the importance of its expansion plans as part of its strategy to increase capacity and strengthen its regional market presence.
In its abbreviated financial results for the half-year ending June 30, 2024, chairperson Peter Annesley said the will remain on expanding cross-border operations and driving revenue growth through increased capacity and improved service offerings.
“We are also exploring new revenue streams and opportunities to diversify our customer base further. This includes a new 4PL SBU (strategic business unit) which will sub-contract excess volume to 3rd party transporters in the region,” he said then.

A fourth-party logistics SBU is a specialised division within a company that provides comprehensive supply chain management solutions by coordinating and managing logistical services for the company’s clients.
Partnerships with major clients such as Delta, Unilever and Nestlé have been instrumental in sustaining Unifreight’s growth.
In a cautionary statement, company secretary, Michael Mnemo, said the firm is involved in negotiations regarding a transaction which, if successfully concluded, may have a material impact on the company’s financial position and share price.
“Shareholders are advised that the transaction remains subject to, among other things, the completion of due diligence, ongoing negotiations, and any required regulatory and shareholder approvals.
“There is no certainty at this stage that the transaction will proceed or that it will be concluded on the terms proposed,” he said.
On its 2024 third quarter trading update, the firm said it is well-poised to achieve commendable end-of-year results, driven by continued growth in cross-border operations and increased contributions from the 4PL unit.

It said the fourth quarter will focus on maximising fleet utilisation to take full advantage of the year end LTL surge in volume.
Additionally, it said it anticipate that the fully operational 4PL division will play a crucial role in its growth, with new client contracts in place expected to keep the SBU busy, well into the new year.