Nairobi-based logistics company Frontier Services Ltd (FSL) is targeting southern Africa as it continues with its African expansion binge.
The Hong Kong Stock Exchange-listed FSL said it has entered into talks to buy a logistics company that will give it access to the new market.
“FSL entered into a non-legally binding term sheet with an independent third party in relation to the proposed acquisition of the business and certain assets of a logistics services group in southern Africa,” said the group’s chief executive Gregg Smith in a statement.
The target company or the size of the deal was not disclosed. FSL will have access to the entire sub-Saharan market should the proposed deal go through.
“The directors of the company consider the proposed acquisition would further expand its existing logistics business throughout Africa and complement the group’s existing footprint and strategic aim to provide complete logistics solutions across Africa,” said Mr Smith.
The company accessed the central and West African markets after it bought Cheetah Logistics, a transport company based in the Democratic Republic of Congo.
Locally it operates through Phoenix Aviation and Kijipwa Aviation. Frontier Services was founded by former Navy SEAL and Blackwater founder Erik Prince.