AFTER it has been taken over by Barloworld, Avis SA is expected to step up its efforts to acquire further operations in Scandinavia with Denmark and Finland likely targets and in Africa
This was confirmed yesterday by Barloworld CE Tony Phillips after shareholders of both Barloworld and Avis SA voted in favour of the R1,4bn deal.
This would see Barloworld, which already holds 33,7% of Avis SA, taking out the Avis minorities, paying a mix of Barloworld shares and cash for a settlement, which would be worth about R13 a share, depending on the performance of the Barloworld stock.
The transaction has still to receive regulatory approval.
Barloworld has previously said it would buy up businesses in territories neighbouring its existing operations.
Avis SA already had franchises in Norway and Sweden , Phillips said, and "Denmark and Finland would be a natural fit".
Phillips said that closer to home there was an array of opportunities to expand into Africa . Barloworld said in a circular to shareholders that the Avis deal "forms part of Barloworld's strategy to reposition and refocus its motor division".
Phillips said that the Avis deal fitted in with Barloworld's wider strategy of moving from just the sale of vehicles into other value-added services.
"This will give us an opportunity to deal with a big rental fleet."
Barloworld said in the circular that the deal "forms part of Barloworld's strategy to reposition and refocus its motor division".
"This will enable the motor division to provide a full range of motor solutions and a totally integrated offering in line with Barloworld's overall strategic focus on building smart partnerships with its global customer base.
Barloworld shares closed 140c up at R69,70. Avis closed 10c up at R12,85 on the JSE Securities Exchange SA yesterday.
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