| Fri 2 Jul 2010, 11:27 | | BAW/BAWP - Barloworld Limited - Barloworld disposes of its Scandinavian Car |
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BAW BAWP
BAW
BAW/BAWP - Barloworld Limited - Barloworld disposes of its Scandinavian Car
Rental operations.
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
("Barloworld or the Company")
PRESS RELEASE
BARLOWORLD DISPOSES OF ITS SCANDINAVIAN CAR RENTAL OPERATIONS.
Barloworld is pleased to announce today, the disposal of its Scandinavian car
rental operations, subject to regulatory approvals, to RAC Holding AS, a
consortium comprising PETT (a local Norwegian investor group) and the chief
executive of the Scandinavian operations.
An internal strategic review, concluded in 2008, classified the Scandinavian car
rental operations as non-core and recommended the disposal of the business.
Independent advisors were appointed to lead the disposal and the management led
consortium was identified as the preferred bidder after an extensive process.
Martin Laubscher, CEO Barloworld Automotive commented: "Our strategic review
concluded that it would not be feasible to implement our integrated vehicle
usage solutions strategy in the region. We are pleased to have concluded the
transaction in difficult market conditions and are confident that the new owners
will continue to build the Avis and Budget brands and exceed our customers`
expectations in the region. We will now focus our energies on building our
market-leading Avis car rental and fleet services businesses in southern
Africa."
The net cash proceeds and debt repayments will approximate R1.1 billion. Clive
Thomson, CEO Barloworld Limited commented: "The net proceeds will reduce
borrowings and enable the group to redeploy capital in higher return business
opportunities. This will strengthen the financial position and growth outlook of
the Barloworld group as the global economy recovers."
For enquiries contact:
Barloworld
Head of Investor Relations, Sibani Mngomezulu:
+27 11 445 1000
email: invest@barloworld.com
www.barloworld.com
College Hill
Jacques de Bie
+27 11 447 3030
Sponsor:
J.P. Morgan Equities Limited
About Barloworld
Barloworld is a distributor of leading international brands providing integrated
rental, fleet management, product support and logistics solutions. The core
divisions of the group comprise Equipment (earthmoving and power systems),
Automotive (car rental, motor trading and fleet services), Handling (forklift
truck distribution and fleet management) and Logistics (logistics management and
supply chain optimisation). We offer flexible, value adding, integrated business
solutions to our customers backed by leading global brands. The brands we
represent on behalf of our principals include Caterpillar, Hyster, Avis, Audi,
BMW, Ford, General Motors, Mercedes-Benz, Toyota, Volkswagen and others.
Barloworld has a proven track record of effectively managing long-term
relationships with global principals and customers. We have an ability to
develop and grow businesses in multiple geographies including challenging
territories with high growth prospects. One of our core competencies is an
ability to leverage systems and best practices across our chosen business
segments. As an organisation we are committed to play a leading role in
empowerment, transformation and sustainable development.
The company was founded in 1902 and currently has operations in 41 countries
around the world with approximately 60% of our nineteen thousand employees in
South Africa.
Date: 02/07/2010 11:27:01 Produced by the JSE SENS Department.
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