JOHANNESBURG, June 21 (Reuters) – South African transport group Imperial Holdings will spin off and separately list its auto dealership business, Motus, it said on Thursday, the latest strategic shake-up aimed at creating value for shareholders.
The break-up into two of South Africa‘s biggest car showrooms business would give shareholders a choice between Imperial’s logistics unit, which counts businesses as clients, and its primarily consumer-facing automotive arm.
“The board believes that the separation of the two divisions will enable the component parts of Imperial’s businesses to operate in a more focused and efficient manner,” Imperial said in statement.
Shares in Imperial rose 0.6 percent to 200.98 rand as of 0959 GMT, outpacing a slightly weaker blue-chip JSE Top-40 index .
Imperial, which traces its roots back to a single car dealership in Johannesburg in the 1940s, has been in a strategic overhaul for the last three years that included the sale of more than 40 non-core businesses and around 50 properties.
(Reporting by Tiisetso Motsoeneng; Editing by Mark Potter and David Evans)