Barloworld SA has released a statement confirming its intention to dispose of its motor retail division, as it has entered into an agreement with NMI Durban South Motors.
Barloworld South Africa (SA) Limited released a statement on Thursday, 21 January 2021, to provide an update on the progress made regarding its plans to dispose of its motor retail division. Barloworld SA has confirmed that it has now entered into an agreement with NMI Durban South Motors Proprietary Limited (NMI-DSM), following the communication to stakeholders regarding the disposal on Wednesday, 9 December 2020.
According to the statement, “NMI-DSM is a joint venture of the Barloworld Group in which Barloworld holds a 50 percent interest alongside the Akoo family (“JV Partners”). Post the Proposed Disposal, Barloworld’s entire motor retail interests will be housed within NMI-DSM and Barloworld will retain its 50 percent interest in the Purchaser.”
In explaining the motivation behind the proposed disposal, the statement noted, “Capital allocation within Barloworld is a key factor in driving return metrics and cash flow generation targets as part of the Barloworld Group’s overall objectives. In Barloworld executing the Proposed Disposal and retaining its shareholding in NMI-DSM, efficient capital reallocation for the Motor Retail business is achieved.”
See the post below.
BAWE BAWNM BAWH BIBAW Proposed disposal of Barloworld’s motor retail division and withdrawal of cautionary ann… https://t.co/XbAMhcyV0F
— JSE_SENS (@JSE_SENS) January 21, 2021