| Thu 21 Jul 2005, 8:23 | | Barloworld Limited - Barloworld Sells 25% Stake Of |
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Barloworld Limited - Barloworld Sells 25% Stake Of Barloworld Logistics Africa
(Pty) Ltd To Bee Consortium
Barloworld Limited
(Registration number 1918/000095/06)
JSE codes: BAW and BAWP
ISIN codes: ZAE000026639 and ZAE000026647
BARLOWORLD SELLS 25% STAKE OF BARLOWORLD LOGISTICS AFRICA (PTY) LTD TO BEE
CONSORTIUM
Diversified industrial company Barloworld Limited has sold a 25% stake in its
South African and African logistics business to an empowerment consortium led by
industry veteran, Isaac Shongwe and his company, Letsema Holdings, for about
R118-million (subject to final net asset value on the effective date).
Effective from 1 August 2005, the deal is one of the most significant to date in
the supply chain industry. This was announced today by Barloworld executive
director and Chairman of Barloworld Logistics, John Gomersall, who described it
as a true empowerment initiative `a deal that will lead to transformation, real
value addition and growth of the business`.
The transaction will lead to the formation of a new company, Barloworld
Logistics Africa (Pty) Ltd, which will house all of the South African and
African business activities of Barloworld Logistics (Pty) Ltd.
Barloworld Logistics Africa will be a business with net assets of about R472
million and annual revenues exceeding R600 million.
The empowerment consortium led by Shongwe will play an active role in the
business development and transformation of Barloworld Logistics Africa with
Shongwe joining the board as an executive director.
The balance of Barloworld Logistics` business in the UK, Europe, USA and the
Middle East will remain directly owned by Barloworld Logistics (Pty) Ltd.
The empowerment consortium consists of Letsema Holdings (60%), CEPWAWU
Investments, a trade union investment company (20%), while the remaining 20% has
been placed in a trust to attract other black entrepreneurs that will be
similarly committed to joining and developing the business.
`The potential for logistics and supply chain management in South Africa and
the rest of Africa is significant` says Isaac Shongwe. `Through our new
partnership, Barloworld Logistics Africa is ideally placed to capitalize on this
opportunity and will allow the company to build on its well established
activities and expertise`.
Barloworld Logistics is a supply chain, logistic management and solutions
company, and the fastest growing division in Barloworld.
Gomersall says: `The sale of a meaningful stake in Barloworld Logistics Africa
is a breakthrough in the supply chain management and logistics industry. Our
deal with Letsema is in line with our strategy, to focus on direct investment
and active management involvement of our BEE partners in the management of the
company. This is what genuine capacity building and broad based empowerment is
all about. The process has been assisted by the long relationship Barloworld
Limited has had with Isaac Shongwe.`
Barloworld Logistics CEO Paul Stuiver comments `It`s a big plus for us that
Isaac brings real industry expertise and experience, which will enable us to
grow into new markets we have not yet approached, and others where we can
expand. The significance of this deal will go a long way towards our clients
meeting their own BEE scorecard requirements`
Shongwe founded Letsema Consulting in 1995. He is also founder and chairman of
Letsema Investment, and has served previously in an executive capacity in
companies involved in the logistics and supply chain industry.
Shongwe added: `Barloworld Logistics have already shown in their short time in
the supply chain management market that they are innovative thought leaders, as
well as successful and profitable implementers of solutions. We are pleased that
their BEE strategy requires real black participation at all levels of the
organisation. We look forward to our partnership, to growing our business
together, and contributing to the continued transformation of the industry.`
A presentation will be made at Barloworld Park, 180 Katherine Street, Sandton at
12h00 on Thursday, 21st July 2005 followed by a finger luncheon and you are
cordially invited to attend. Should you require any further information please
contact Rebecca Morgan at 011 445 1155 or rebeccam@barloworld.com
Released on behalf of Barloworld Limited by Westcom. For further information
please contact Mark Drewell, head of corporate communications at Barloworld on
011 445 1204 or e-mail: mdrewell@barloworld.com. Visit the Barloworld website:
www.barloworld.com
