Barloworld"s R2 Billion Motor Business Empowerment
Barloworld Limited
(Registration number 1918/000095/06)
JSE code: BAW
ISIN code: ZAE000026639
("Barloworld")
BARLOWORLD"S R2 BILLION MOTOR BUSINESS EMPOWERMENT DEAL
International brand management company Barloworld has entered into a R2 billion
turnover joint venture empowerment deal through its KwaZulu-Natal
DaimlerChrysler motor dealership.
Announcing this today, Barloworld chief executive officer Tony Phillips says the
deal is extremely significant for the company, and the biggest empowerment
venture to date in the South African motor industry.
In terms of the deal, Barloworld"s NMI Durban dealership has entered into a
50/50 joint venture with Durban South Motors to form a new company that will
trade as NMI Durban South Motors (Pty) Ltd. It has seven dealerships in the
Durban Metropolitan area, including the former McCarthy Ltd DaimlerChrysler
business in Pinetown.
The new company which will have an annual turnover of around R2 billion and net
assets of R300 million will be headed by Yunus Akoo, owner of Durban South
Motors, and will specialise in selling DaimlerChrysler passenger and commercial
vehicles. "We employ 650 people and will sell about 350 new vehicles and 250
used vehicles a month - more than 6 000 units a year - in separate `Lifestyle
Centres" for Mercedes Benz, Chrysler Jeep, Mitsubishi and Freightliner
vehicles," says Akoo.
Phillips says the deal, which is the result of DaimlerChrysler awarding its
greater Durban territory to NMI and Durban South Motors in line with its dealer
representation strategy, satisfies at least two of Barloworld"s main operating
criteria - actively seeking out empowerment opportunities in South Africa, and
getting involved in smart partnerships.
"The partnership brings together two well respected dealerships in a venture
with bright prospects. From a Barloworld perspective we believe a half share in
the combined entity will generate higher profits than we have from 100 percent
of our smaller DaimlerChrysler operation in the past," he said.
"The new company has already commenced operations and will be a success from the
start. Our management team will be moving to new premises and we have already
identified new dealership sites. Our aim is to ensure that NMI Durban South
Motors becomes the best DaimlerChrysler dealership in the country," added Akoo.
7 May 2003
Ends
Issued on behalf of Barloworld by Westcom Public Relations.
For further information please contact Yunus Akoo at NMI Durban South Motors on
+27 31-916 4400 or e-mail yakoo@dsouth.co.za or Mark Drewell, Head of Corporate
Communication at Barloworld Limited on +27 11 445 1204 or e-mail
mdrewell@barloworld.com.
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