Press releases

Barloworld confirms the unbundling of the Car Rental and Leasing business via a JSE listing

21 November 2022

An exciting new chapter for both companies

Highlights

·     The Car Rental and Leasing business will be listed on the Main Board of the JSE as Zeda Group

·     Zeda Group will continue to trade as the well-known and highly recognisable Avis and Budget brands

·     Each Barloworld shareholder will receive 1 Zeda share for every 1 Barloworld ordinary share held.

·     Subject to the approval of the JSE, Zeda will list on the JSE Main Board on 13 December 2022

Johannesburg – Barloworld Limited today announced its board’s approval to unbundle its stake in Avis Southern Africa by way of a separate listing on the Main Board of the Johannesburg Stock Exchange (JSE) as Zeda Group.

Commenting on the decision, Group chief executive officer Dominic Sewela said: This is a bittersweet moment for Barloworld. While we conclude our restructuring and portfolio shift to defensive, relatively asset light and cash generative industrial sectors, based on a business-to-business operating model, we are also letting go of an incredibly strong business whose adaptability has taken it from strength to strength.

This decision was taken in the interest of maintaining value for our shareholders. As two separate companies each business will be able to operate in a more focused and efficient manner – actively pursuing our growth ambitions in different sectors and verticals.”

The unbundling will be implemented by listing 100% of the issued ordinary share capital of Zeda on the Main Board of the JSE on Tuesday, 13 December 2022. Ordinary Barloworld shareholders recorded on the Barloworld share register at 17:00 (SAST) on Monday, 12 December 2022 will receive 1 Zeda Ordinary Share for every 1 Barloworld Ordinary Share held, giving shareholders access to two promising businesses.

This unbundling represents a completion of Barloworld’s non-core divestiture programme and will result in a more stream-lined business whose strategy and capital allocation is focused on the Industrial Equipment & Services and Consumer Industries verticals.

Once listed, Zeda will be the only integrated mobility solutions provider of its kind in southern Africa. By leveraging this integrated system along with Avis and Budget customer loyalty, Zeda has unparalleled forecasting capabilities which allow it to proactively assess the consumer landscape and adapt to market demands. Operating as a standalone company will enable Zeda to pursue its growth strategy, with autonomy on capital allocation. 

Zeda Group CEO-designate, Ramasela Ganda said: This is the beginning of an exciting chapter for us as we pivot from Barloworld with a solid foundation. Being a standalone business will enable better focused execution of our integrated mobility strategy, which caters to the evolving customer’s needs in our markets of operation.  We provide an array of mobility solutions including car rental, fleet management and leasing as well as car sales in 10 countries. Through these operations, which have downstream benefits for the southern African economy and play a vital role in key value chains and sectors, Zeda demonstrates its role as a catalyst of economic growth.”

Further information regarding Zeda, the unbundling and the listing will be set out in a pre-listing statement published on Monday, 28 November 2022 followed by Zeda’s inaugural financial results presentation on the same day.

“This is indeed an exciting beginning for Zeda and represents a steadfast focus on our ‘Fix, Optimise, Grow’ strategy. For our part, the Barloworld Board of Directors looks forward to our future as an industrial processing, distribution, and services company with two primary areas of focus: Industrial Equipment and Services and Consumer Industries,” said Sewela.