| Tue 22 Oct 2002, 10:32 | | Imperial Forms Joint Venture With Renault |
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Imperial Forms Joint Venture With Renault
Imperial Holdings Limited
Press Release
JSE Code: IPL
ISIN No: ZAE 000003620
Johannesburg - Tuesday October 22, 2002
Imperial Holdings Limited, the mobility and transportation group is forming a
joint venture with Renault to house the Renault business in South Africa.
Six years ago, Imperial commenced the importation and distribution of Renault
vehicles in South Africa, a venture that has proved to be highly successful and
Renault currently holds approximately 4% of the local passenger market.
Of the R100-million that Renault is investing in the new joint venture, the
largest portion will accrue to Imperial. Renault has stated that its objective
is to establish a strong commercial presence in the Southern African region and
it aims to increase its market presence in the passenger car market to around 7%
by 2005.
Making the announcement today Imperial chief executive Bill Lynch said that the
new company, XDSL Trading 219 (Pty) Ltd (which will be renamed Renault South
Africa) would be held 51% by Renault with Imperial holding the balance. "The
new venture marries Renault`s international standards in the fields of
marketing, after sales service and IT systems, while we at Imperial will
contribute our local distribution skills and market knowledge."
The new venture, which consists of 47 Renault dealerships throughout South
Africa and the neighbouring states, will own 30% of the dealerships with the
rest of the dealerships being franchised.
Manny de Canha, the managing director of Imperial Car Imports, will continue as
the managing director of the new venture. He said: "We are excited about the
new venture and are optimistic that this business, now with two powerful
partners, can capitalise on the potential in the market. The Renault brand is
very powerful and we believe that there is still growth in this market that we
can tap into."
Me de Canha added that Renault will not manufactured locally but will use South
Africa as a base for component sourcing to supply European factories.
The agreement has been submitted to the South African Competition Commission.
Further information concerning the creation of the joint venture will be
published when the Commission gives its ruling.
ends
Please note:
Imperial Holdings activities include a wide range of services relating to
motoring, car rental and tourism, transport, trucking, aviation leasing,
logistics and fleet management outsourcing, forklifts, and a comprehensive
related financial services arm supplying banking, short-term insurance and life
assurance. While these services combine to facilitate maximum synergy between
business entities, a decentralised management structure engenders industry best
practice. Management is empowered to develop each business with
entrepreneurship into unique business units within the strength and support
structures of the Imperial group.
Imperial employs 27 875 people and operates from 862 outlets or branches in 26
countries and had total assets of R20-billion at June 25, 2002 and its revenues
for the 12 months to June 25, 2002 totalled R28,1-billion.
Visit our websites - www.imperial .co.za and www.imperialtoday.co.za
ISSUED BY : PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF : IMPERIAL HOLDINGS LIMITED
FURTHER INFORMATION : PENELOPE GRACIE
CONTACT: OFFICE +27 (11) 447-3301
MOBILE 082-55-77-444
Date: 22/10/2002 08:10:00 AM Produced by the JSE SENS Department
