Automotive dealer group Combined Motor Holdings (CMH) aims to sell between 15 to 25 per cent of its shareholding to a black empowerment partner before February 2005.
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Automotive dealer group Combined Motor Holdings (CMH) aims to sell between 15 to 25 per cent of its shareholding to a black empowerment partner before February 2005.


CMH financial director Stuart Jackson said the group had received proposals from a handful of potential investors. CMH intends to introduce an empowerment partner on a direct equity basis, but in the absence of a major acquisition, any additional share issue would dilute earnings, he added.


In CMH's annual report, chairman Maldwyn Zimmerman said the directors wanted to bring on board an empowerment shareholder without reducing earnings "to any meaningful degree".


Yesterday, he said CMH "ideally" wanted to conclude an empowerment equity partnership in conjunction with an acquisition. The board had received proposals from about five potential empowerment groups, including Thebe Tourism Group.


CMH subsidiary National/Alamo and Thebe already have a joint venture, which CMH chief executive Jebb McIntosh told "assisted the car hire division in procuring government and parastatal contracts".


Zimmerman said that in the past year CMH had secured two Ford-Mazda outlets, giving the group sole distribution rights in the Durban-Umhlanga area. One Delta (no GMSA) dealership on the East Rand and one on the West Rand were acquired, providing CMH with "good exposure to east and west Johannesburg".

Original article from Car