The international brands distributor, which also provides integrated rental, fleet management, product support and logistics solutions, sold its interests to Australian automotive businessman, Nick Politis.
The transaction is effective 31 March 2014 and follows the sale of the Ferntree Gully dealership, which was concluded on 31 October 2013.
“These transactions were concluded at net asset value plus a premium for goodwill and realised combined net proceeds, after settling outstanding debt, of approximately 1.3 billion rand,” [DATA BAW:Barloworld Limited] said.
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“The cash will be used to reduce Barloworld group net debt in the short term and to fund strategic growth opportunities in the medium term.”
Barloworld recently reported a rise in revenue to 65.1 billion rand for the 12 months ended 30 September 2013 from 58.5 billion rand for the same period in 2012.
“The automotive and logistics division delivered a strong result with all business units performing well ahead of the prior year,” Barloworld chief executive, Clive Thomson had said.
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“We continued our strategy of allocating capital to higher returning businesses and were successful in concluding a number of important acquisitions and disposals in the period. These will position us well for the future and we expect to make further progress in the year ahead.”