Share code : ASA
ISIN : ZAE000013389
MEDIA RELEASE
4 October 2001
CMH & BANKFIN SIGN STRATEGIC ALLIANCE
Combined Motor Holdings (CMH) the motor dealership and financing group,
which is responsible for over 15,000 vehicle sales a year at R2, 4 billion,
has concluded an alliance with Bankfin, one of South Africa's leading
instalment financing institutions and part of the Absa banking group.
The alliance allows Bankfin, which specialises in vehicle and asset-based
finance, to combine its resources with this large motor group and to offer
its customers a one-stop facility. CMH Group sales volumes are, as a
result, set to further improve, with Bankfin simultaneously upping its share
of the finance market while continuing with its existing manufacturing joint
ventures.
This strategic alliance will provide instant access to finance for clients
wishing to purchase either a new or used vehicle off the CMH Group's
dealership floors. A unique feature of this relationship is the strong e-
commerce infrastructure the Absa Group can offer its business partners.
Jebb McIntosh, CMH's Managing Director, said he was extremely happy with the
alliance with Bankfin. "They have steadily built a sound reputation in the
vehicle finance market, and their association with Absa is particularly
pleasing in terms of our overall strategy".
Peter Mageza, the newly appointed Managing Executive of Bankfin, said:
"This reaffirms Bankfin's support of the motor dealers. Providing finance on
the showroom floor is a natural convenience to any prospective customer. We
will leverage our Absa relationship to the benefit of the alliance.
"We have developed cutting edge technology which we will use to deliver
world class service in respect of transaction processing, turn-around times,
risk and cost management. This should surely be a very profitable
partnership with the CMH Group".
CMH shares traded at R15,45, whilst ABSA shares were at R38,00.
Issued by: Andree Laubscher
Consultant: Absa Media Relations
Tel (011) 480-5235
Cell 082-225-5009
e-mail: andreel@absa.co.za
For futher information, please contact: Peter Mageza
Managing Executive: Bankfin
Tel (011) 350-3497
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