Barloworld sells Motor Retail unit to JV


Barloworld sells Motor Retail unit to JV

Published Date: 2021-01-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Barloworld sells Motor Retail unit to JV

The industrial holding company will retain a 50 percent stake in the business through its partnership with the Akoo family.

Barloworld has reached a deal to sell its Motor Retail business to NMI Durban South Motors, a joint venture it owns a 50% stake in. The disposal follows a review of its portfolio of investments, including the dealership portfolio, and the optimal deployment of its capital.

It's selling the business to NMI-DSM, a long-standing partnership with the Akoo family in Durban, for just over R947 million. Following the transaction, its entire motor retail interests will be housed in the JV.

Motor Retail sits within the Barloworld Automotive division and operates leading motor franchise dealerships in SA and Botswana, representing leading global brands such as Audi, BMW, Ford, Toyota, Lexus, Isuzu, Mazda, Volkswagen and Mercedes-Benz. Products include the sale of new and used vehicles with supporting finance insurance products, and aftermarket service including parts sales. The deal excludes the group's Digital Disposal Solutions unit and the used vehicles operations of Avis Budget Rental and Fleet.

The Akoo family have been agents of Mercedes-Benz since 1991 and partners of Barloworld since 2003. NMI-DSM built the state-of-the-art Mercedes Benz facility in Umhlanga Ridge, the first Brand Campus concept in the country.

By shifting Motor Retail into the NMI-DSM joint venture, Barloworld said it would be able to create a larger business with a focus on growth through a diversified brand portfolio.

Barloworld's shares closed 0.5% higher at R97.20 yesterday. The announcement was made after the close of trade.

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