LAVAL, QC, Dec. 14 /CNW Telbec/ - Mercator Transport Group Corporation ("Mercator Transport") (TSX-V : GMT) is pleased to announce the conclusion of a joint venture agreement for purposes of developing the East African market.
After implementing offices in Ghana and acquiring Toti-Berg Freight Services Limited ("Toti-Berg") in West Africa, Mercator Transport breaks new barriers and continues developing the African market, gaining a foothold on the Eastern part of that continent. In doing so, Mercator Transport combines its international know-how and resources to partners with expertise specific to this region of the world, forming a strategic alliance with a primary focus on setting Mercator Transport's presence in Tanzania, Kenya, Zambia and Uganda.
This arm's length agreement provides that Mercator Transport will hold a 60% participation in a joint venture carried out through a Canadian-incorporated corporation, Mercator East Africa Inc. Each of Mercator Transport and its African partners will participate equally to the initial US$200,000 investment made to the capital of the corporation. The agreement also provides Mercator Transport with the option to purchase its African partners' share in the venture over a period of four years, for a price tied to profits generated by the joint venture and payable through the issuance of shares of Mercator Transport.
Mercator Transport's partners in the joint venture are led by Mr. Sankar Venugopal. Mr. Venugopal has 17 years of experience with large-scale corporations specialized in international freight forwarding and logistics. In the last few years, he acted as manager, responsible for the East and South of Africa, working notably in Tanzania, Kenya and Uganda.
Commenting on Mercator Transport's development in Africa, Mr. Jean-Pierre Apelian, CEO, declared: "Africa is turning out to be a major challenge to our customers. After setting up offices in Ghana and acquiring Ghanaian freight forwarder Toti-Berg, Mercator Transport continues to grow with the creation of a joint venture in East Africa. The purchase of Toti-Berg and the conclusion of this joint venture agreement constitute two major strategic alliances giving Mercator Transport an edge in the promising market that is Africa, a significant benefit for our customers. This joint venture will hence allow Mercator Transport to set up new business locations in East Africa in the next few months."
About Mercator Transport
Mercator Transport specializes in transport brokerage, international logistics and distribution. With offices in Montreal (Canada), Las Vegas (USA), Lyon (France), and Tema (Ghana), Mercator Transport offers value-added services in global supply chain management, and designs tailor-made solutions. Customer intimacy and commitment differentiates Mercator Transport in its ability to implement customers' requirements.
This press release contains forward-looking statements. Words such as "can," "have," "should," "anticipate," "believe," "project," "estimate," "plan," "continue" or similar expressions are intended to identify forward-looking statements. These forward-looking statements, by their nature, are not guarantees of Mercator Transport's future operating or financial performance and are subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Factors that could cause actual results to differ materially from those contemplated in forward-looking statements include risks associated with economic conditions, political situation, foreign exchange rates as well as risks associated with the business environment, and operational risk of Mercator Transport and its subsidiaries. Given the analyses and uncertainties, actual events may differ materially from current expectations. Mercator Transport disclaims any intention or undertaking to update or revise any forward-looking statements, even as a result of future events or otherwise, except as required by applicable law.
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SOURCE MERCATOR TRANSPORT GROUP CORPORATION
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