(Incorporated in the Republic of South Africa)
(Registration no. 1918/000095/06)
JSE code: BAW
ISIN code: ZAE000026639
COMPETITION TRIBUNAL APPROVES R890-MILLION SALE OF BARLOWORLD LEASING BUSINESS
The Competition Tribunal has approved the sale by international industrial brand
management company Barloworld of its third party South African motor vehicle
finance book to Wesbank, a division of FirstRand Bank Limited, for a gross
consideration of approximately R890-million. The deal will be effective from 1
April, 2003.
This was announced today in a joint statement by Barloworld and Wesbank.
Wesbank will honour all existing finance agreements, and has offered employment
to affected Barloworld staff members.
When the deal was first announced in October last year, the estimated value of
the book was R830 million but due to continued new business flows this has grown
to approximately R890 million. The final value will be calculated on the
effective date but is not expected to vary significantly and is at net book
value.
Commenting on the deal, Barloworld CEO Tony Phillips said, "Our motor leasing
operation, which focuses on providing finance for the sale of motor vehicles to
the South African corporate clients of Barloworld Motor was identified last year
as a non-core component of the company`s business. We will however continue to
offer comprehensive fleet solutions to a growing Barloworld Motor client base.
The difference will be that the finance element will no longer be sourced from
the Barloworld balance sheet but through an on-going strategic partnership with
Wesbank."
A Wesbank spokesman said: "We are excited about this acquisition as it fits into
our plans to grow our share of the fleet market. Wesbank is ideally positioned
to capitalise on the opportunities in this business through our systems and
customer service culture. "
Barloworld has two other leasing books. In South Africa, Barloworld Equipment
Finance provides finance for capital equipment sold by Barloworld Equipment and
London-based Barloworld Finance operates in the United States and Europe,
providing finance to customers in the Capital Equipment and Industrial
Distribution businesses.
While the transaction will not have a material effect on Barloworld`s earnings
or net asset value, it will have a positive impact on the gearing of the balance
sheet.
Ends.
For background information please contact Barloworld:
Mark Drewell, Head of Corporate Communication, (011) 445 1204,
mdrewell@barloworld.com or visit www.barloworld.com
March 4, 2003
Sponsor
Cazenove
Date: 04/03/2003 12:17:00 PM Supplied by www.sharenet.co.za
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