Unifreight snaps up Cheetah Express in US$2m deal

CLOUDINE MATOLA

Publicly traded transport and logistics giant, Unifreight Africa Limited, has entered into an agreement to acquire 86.67% stake in Cheetah Express Logistics (Private) Limited in a transaction valued at US$2.08 million, positioning the group as the majority shareholder, Business Times can report.

Cheetah Express is the sole authorised global service participant for FedEx Express in Zimbabwe, giving Unifreight immediate access to the high-growth express courier segment and international logistics networks.

Company secretary Sithulisiwe Ncube said the transaction marks a significant milestone in the group’s expansion strategy.

“The board of directors of Unifreight Africa Limited is pleased to advise shareholders and the investing public that the company has entered into a Sale of Shares Agreement for the acquisition of an effective 86.67% shareholding in Cheetah Express Logistics (Private) Limited, the sole authorised Global Service Participant for FedEx Express in Zimbabwe,” Ncube said.

“This acquisition marks a significant step in Unifreight’s growth strategy, providing immediate entry into the high-growth express courier segment and strengthening Zimbabwe’s connection to the global economy.”

The acquisition will be executed through the purchase of both direct and indirect shareholdings held by the seller, resulting in Unifreight assuming majority control of the logistics firm.

The total consideration of US$2.08m represents approximately 15.7% of Unifreight’s market capitalisation on the Zimbabwe Stock Exchange (ZSE).

Ncube said the deal is expected to deliver immediate strategic benefits, including revenue diversification and improved operational efficiencies.

“The acquisition provides Unifreight with an immediate and significant foothold in the high-growth express courier market, adding a well-established business with a 30-year track record as Zimbabwe’s sole authorised FedEx Express Global Service Participant,” she said.

“It introduces a service-based, non-asset-heavy revenue stream with strong margin potential, reducing the group’s reliance on traditional freight cycles.”

She added that integration synergies are expected to enhance efficiencies across administration, procurement, and route planning, ultimately improving the cost-to-income ratio of the combined entity.

“It is expected to enhance medium-term profitability and position Unifreight as a comprehensive, end-to-end logistics provider with both national reach and global connectivity,” Ncube said.

Under the terms of the agreement, Unifreight will pay an initial US$210,000 upon signing, with the remaining balance of US$1.87m due within 30 days of the effective date.

The purchase consideration is structured as US$1.12m for shares in Cheetah Express Logistics and US$960,000 for shares in Vermillion Investments (Private) Limited.

Funding for the transaction will be partly sourced from internally generated cash, with the balance financed through existing overdraft facilities with two local financial institutions.

The facilities carry a fixed interest rate of 10.5% per annum, are repayable over a three-year period, and are secured by a lien over the company’s fleet of trucks.

Unifreight chief executive officer Richard Clarke said the deal enhances the group’s international connectivity and represents a transformative step for the business and the broader economy.

“For 80 years, Swift has focused on building a logistics network that Zimbabwe can rely on. This acquisition allows enhanced international connectivity and is a significant step for Unifreight, and for Zimbabwean businesses and individuals who need reliable access to global markets,” Clarke said.