By offering R1,4-billion for the 65 per cent of car rental group Avis SA it does not already hold, the Barloworld group looks set to significantly increase its motor operations.
By offering R1,4-billion for the 65 per cent of car rental group Avis SA it does not already hold, the Barloworld group looks set to dramatically increase its motor operations.
According to , the group's expansion drive was expected to include the acquisition of new Avis franchises offshore, new luxury car dealerships in the UK and the US, and a move into new businesses in SA.
Barloworld chief executive Tony Phillips said the firm would provide R1,085 billion in cash from borrowings, and would issue R335 millio n in new shares. However, the deal is subject to approval by shareholders of both Avis and Barloworld, as well as the normal regulatory requirements.
Phillips said Barloworld had decided its automotive business was "a business in transition" and this deal had its roots in 2000, when a strategic 24 per cent of Avis was acquired. He said the fit between Avis and the other Barloworld automotive businesses was "exact and precise". The purchase and delisting of Avis is expected to go through in March, the report added.
Barloworld Motor chief execuive Martin Laubscher said the integration of Avis into the group's other businesses would offer what he called a "shopfront" to the customer, who would be able to do more than just hire a car.
Analysts expect the Barloworld/Avis portfolio could expand, both in SA and abroad, to include not just fleet services, car hire and motor retail, but also panelbeating, tyre and glass sales, etc.
Original article from Car