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Business Reporter
Transport and logistics concern Pioneer Corporation Africa Limited will hold a meeting of shareholders later this month to seek permission to change its name to Unifreight Africa Limited. Group chief executive Mr Gary Smith said in a statement that Pioneer wanted to change its name to Unifreight because the brand carried more weight and had a longer history in Zimbabwe.

“The company would like to encompass this strength and potential use it to build its brand further throughout the country and the region,” Mr Smith said in circular to shareholders.

Pioneer said in March that the acquisition of the Unifreight business and assets would drive profitability in 2014, after it posted a $3,2 million loss in the full year to December 31 last year. Revenue was added by $21 million while the asset base was boosted to $30 million.

The proposed change of the company name to Unifreight is subject to the passing of a special resolution by shareholders at an extraordinary general meeting slated for September 23.

Mr Smith said that the proposed change of the company name was in the interest of the company and the shareholders.

“Accordingly, the directors recommend the shareholders to vote in favour of the special resolution to be proposed at the EGM.”

The change of name will not affect any rights of the holders of securities of the company, its business and financial position.

Existing share certificates in issue bearing the name Pioneer shall continue as evidence of holding such shares and will remain valid for trading, settlement and delivery purposes after the change of name to Unifreight comes into effect.

Mr Smith said there will not be any arrangement for change of existing share certificates of securities for new ones to reflect the rebranding from Pioneer to Unifreight.

The change of name, if approved by shareholders, will take effect from the date of issue of the relevant certificate for the change of name to Unifreight the registrar of companies.

The listed transport and logistics concern Pioneer paid $7,2 million for the acquisition of fellow transport industry player Unifreight Swift in a mega-deal meant to restore its leading position in the logistics business.

The deal entailed Pioneer issuing 514 974 875 shares of $0,008 each for a purchase consideration of $4 million.

The balance, to add up to $7,2 million, was made up of $900 000 Unifreight debt secured on trucks, $1,5 million for the purchase of the Swift brand over five years and $711 000 for Unifreight’s IT systems paid over three years.

After the transaction, Unifreight acquired roughly 36,7 percent shareholding in the enlarged Pioneer Corporation Africa Group, which will certainly enjoy a fair share of the market.

The transport and logistics group’s asset base will increase by $12 million to $30 million after acquiring Unifreight.