Arbitration Panel Rules For Avis,reduces Cost Of N
Johannesburg, 21 February 2002 - An arbitration panel in Oslo has made an
award totalling approximately R22 million to Avis Southern Africa in
relation to its purchase of Avis Norway.
The panel's ruling followed a claim by Avis that the Norwegian operation's
acquisition price had been overstated because historical audited financial
statements provided to Avis had subsequently been found to be incorrect.
Avis Southern Africa acquired the Avis operations in Norway and Sweden
effective April 2000 for a cash consideration of some R300 million. The
bulk of the arbitration panel's award will be allocated to a reduction in
the carrying value of the investment in Avis Southern Africa's accounts,
with the balance of the award attributable to the recovery of direct and
indirect expenses.
Avis chief executive Grenville Wilson said today it was worth noting that as
a result of an improved operational focus and other value added under Avis
Southern Africa's ownership, the Scandinavian businesses had consistently
outperformed expectations since their acquisition and were continuing to
show strong growth. "There is every indication that their contribution is
sustainable and that we can expect 25% of the group's net profit to be
generated outside the Rand Monetary Area by next year," he said.
Issued by du Plessis Associates on behalf of Avis Southern Africa Limited.
dPA contact - Helen McKane on Tel : (011) 728 4701, Fax : (011) 728 2547/8 or
e-mail : avis@dpapr.com
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