HILTON TARRANT: Hello, good evening and welcome to the SAfm Market Update with Moneyweb. Hilton Tarrant in for Alec Hogg this Tuesday evening. First, the headlines. A shock announcement out from Telkom just an hour ago - Peter Nelson, chief financial officer follows former CEO Reuben September out of the door. He's resigned and leaves in October. Irnest Kaplan weighs in on the executive level chaos. The World Cup spending update from Visa's Andrew Woodward, Imperial's Hubert Brody in the studio on another acquisition by the logistics group, we'll talk gold and David Shapiro from Sasfin is here to take us through the markets. Before we get to our regular guest, David Shapiro of Sasfin, we've got Imperial's Hubert Brody with us in the studio. Hubert, Imperial today announcing the acquisition of CIC holdings caught a few people by surprise. Not a lot of analysts follow CIC. It is listed on the JSE. It operates out of Namibia, operating in the FMCG space. What attracted you to CIC?

HUBERT BRODY: Hilton, we've been looking for quite a while for a logical next step with logistics into Africa. We are very well established in South Africa, but north of the border, although we've been growing, we are still a little bit thin, and we've realised that the business model should include the whole chain, not only transport which we are very actively doing in Africa, but also the remaining steps - the warehousing of goods, merchandising of the goods, and the actual distribution thereof. It therefore gives us that whole route to market which we can then offer to our local customers and hopefully some new customers as well.

HILTON TARRANT: Hubert, where does CIC operate currently?

HUBERT BRODY: They operate in Namibia, in Botswana, Mozambique, Swaziland and to a certain degree in South Africa. They are in fast-moving consumer goods, including liquor in some cases, edible goods, dry, ambient, the whole range.

HILTON TARRANT: As you mentioned, it's got a number of operations across that value chain, not just simply logistics. Are then any parts of CIC that you wouldn't necessarily hold on to?

HUBERT BRODY: No, we like the whole package.

HILTON TARRANT: The premium, 32.5% to the 30-day average price of the stock, putting that purchase in at R724m - are you comfortable with that valuation?

HUBERT BRODY: Hilton, we really don't look at the premium relative to what it's trading at. We look at the premium relative to what we think our earnings would be, coming out of the business, and also relative to the synergies that it would have with our company. And from that point of view we are very comfortable, and it achieves all the parameters and the standards we set ourselves in an acquisition.

HILTON TARRANT: And you'll be funding it through your cash reserves?

HUBERT BRODY: Yes, we will pay with cash.

HILTON TARRANT: Just in terms of the markets that CIC operates in, pretty much all the countries surrounding South Africa - are those markets sizeable yet? What is their size in relation to an economy like South Africa or potentially Nigeria?

HUBERT BRODY: They are relatively small compared to Nigeria and South Africa. But on the margin where this acquisition gives us growth it does make quite a difference, and obviously we would only have done an acquisition like this if it had future opportunities - and there are still many African countries where they are not active. And with our capital and assistance and some of the muscle that Imperial can bring to CIC, there are many more markets which we could open up.

HILTON TARRANT: So you might indeed be looking a little bit more northwards after this?

HUBERT BRODY: Yes, very possible.

HILTON TARRANT: Hubert Brody is the chief executive of Imperial.