| Wed 17 Nov 2010, 7:10 | | BAW/BAWP - Barloworld Limited - Barloworld to acquire 100% of Russian |
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BAW BAWP
BAW
BAW/BAWP - Barloworld Limited - Barloworld to acquire 100% of Russian
Caterpillar Dealership
Barloworld Limited
(Registration number 1918/000095/06)
JSE codes: BAW and BAWP
ISIN codes: ZAE000026639
ZAE000026647
BARLOWORLD TO ACQUIRE 100% OF RUSSIAN CATERPILLAR DEALERSHIP
Barloworld today announced it has reached agreement to acquire the remaining 50%
shareholding in its Russian Caterpillar equipment joint venture (Vostochnaya
Technica) for $52 million (approximately R365 million) ("The Transaction"). The
Transaction is subject to certain regulatory and other approvals.
Barloworld Chief Executive Officer, Clive Thomson said: "This acquisition is in
line with our strategy to grow our core Caterpillar equipment business. It is
an opportunity which provides the group with significant long term growth
potential in the mining, infrastructure, power systems and forestry segments in
Siberia and the Russian Far East. We will work very closely with our principal,
Caterpillar, to drive market leadership and have ambitious plans in place to
expand our distribution footprint, increase coverage and enhance customer
service."
The business distributes and supports Caterpillar and allied equipment across
western Siberia, eastern Siberia, Yakutia and the Russian Far East, a territory
some 9, 8 million square kilometres in extent. The company, formed in 1998 as a
greenfields operation, has achieved rapid growth over a number of years and now
employs close on 400 people in the territory.
The Siberian Caterpillar dealership holds immense promise for Barloworld. The
territory has some of the largest mineral reserves in the world, including
deposits of coal, gold, copper, iron ore, platinum, palladium, diamonds and
nickel. It also has large oil and gas fields and forestry reserves as well as
major opportunities for infrastructure development and power supply.
Peter Bulterman, CEO of Barloworld Equipment, stated: "The company is well
positioned to deliver strong growth as Russia emerges from the global economic
downturn and commodity prices recover. In 2010, revenues approximated $200m and
significant growth is anticipated in 2011 as order books have increased
substantially over the past year."
The Transaction is below the JSE thresholds and is for information purposes
only.
Date:
17 November 2010
Sponsor
J.P. Morgan Equities Limited
Enquiries:
Barloworld Limited: Sibani Mngomezulu,
Tel +27 11 445 1000
E-mail invest@barloworld.com
College Hill: Jacques de Bie,
Tel +27 11 447 3030
E-mail Jacques.deBie@collegehill.co.za
For background information visit www.barloworld.com
Date: 17/11/2010 07:10:01 Produced by the JSE SENS Department.
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