Barloworld concludes disposal of Motor Retail business01 June 2021
Conditions precedent substantially met; Motor Retail portfolio now housed under NMI-DSM
Barloworld Group today announces the successful conclusion of the sale of its Motor Retail business to NMI Durban South Motors ("NMI-DSM"). This follows the fulfilment of the conditions precedent, including the Competition Tribunal's approval of the disposal. Effective today, 1 June 2Barloworld Group today announces the successful conclusion of the sale of its Motor Retail business to NMI Durban South Motors ("NMI-DSM"). This follows the fulfilment of the conditions precedent, including the Competition Tribunal's approval of the disposal. Effective today, 1 June 2021, Barloworld's Motor Retail interests are housed within NMI-DSM, with Barloworld retaining its 50% interest in the associate.
The streamlining of the Motor Retail business is in line with Barloworld's future positioning, as an industrial processing, distribution and services company with Industrial Equipment & Services and Consumer Industries as its areas of focus.
The total proceeds of the transaction is estimated to be just over R1 billion, subject to customary closing mechanics. A substantial portion of this (R856 million) will be paid to Barloworld now and upon finalisation of the closing accounts in the next few weeks. The balance of R150 million will be paid in two tranches over the next two years.
Commenting on the close of the transaction, Barloworld CEO Dominic Sewela says: "I am pleased at the positive strides we continue to make as we restructure our portfolio towards defensive, relatively asset light and cash generative industrial sectors, based on a business-to-business operating model. The conclusion of this sale enables us to create value for our shareholders and will see NMI-DSM continue to build on the platform that has been created."
Going forward, NMI-DSM will be reported in Barloworld's books as an associate. Kamogelo Mmutlana, who has been at the helm of Barloworld's Automotive and Logistics Business will join NMI-DSM as Co-CEO. All existing employees of the Barloworld Motor Retail business will transfer to NMI-DSM.