BAW/BAWP - Barloworld - Barloworld to sell part of
BAW BAWP
BAW
BAW/BAWP - Barloworld - Barloworld to sell part of Australian Coatings
business to PPG
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(ISIN: ZAE000026639)
(Share code: BAWP)
(ISIN: ZAE000026647)
("Barloworld")
Barloworld to sell part of Australian Coatings business to PPG
We are pleased to announce that agreement has been reached for the sale of
certain of the assets of the Barloworld Coatings Australia business
including the Villawood factory to PPG for net asset value.
Barloworld and Barloworld Coatings indicated last year in July, following
the Australian Competition and Consumer Commission (ACCC) decision on the
proposed acquisition of Wattyl, that "it will not be `business as usual`
for our coatings interests in Australia" and that we would be "pursuing
options to restructure our business and as a result refocus our investment.
Notwithstanding this, we remain committed to the Asia-Pacific region and
will continue to pursue a number of other avenues for expansion in this
important area of the world."
Barloworld Coatings will retain a strategic interest in Australia as the
transaction does not include the Glen Waverley manufacturing facility in
Melbourne. It will be able to focus on certain niche segments in Australia
and grow abroad. This facility will continue to toll manufacture the
Bristol range of products for PPG. Barloworld Coatings will also continue
to supply colourants to PPG.
Completion of the acquisition is subject to customary closing conditions,
including receipt of any required regulatory approval.
Andre Lamprecht, CEO of Barloworld Coatings, said "since the ACCC turned
down our acquisition in July last year we have steadily been working on the
actions we indicated at the time. The announcement of the sale to PPG is a
credit to our respective teams as well as our staff in Australia. We are
pleased to report the resolution of our Australian investment and a new
direction for us in this regard."
Clive Thomson, CEO of Barloworld Limited indicated that "This outcome is a
very satisfactory conclusion for Barloworld and represents another
important step in implementing our announced strategic actions."
FURTHER INFORMATION
For further information contact Sibani Mngomezulu, Head of Investor
Relations at Barloworld:
phone +27 11 445 1433,
email sibanim@barloworld.com
Date: 20/07/2007 08:49:06 Produced by the JSE SENS Department.
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