Leading automotive retailer McCarthy will announce a major new black economic empowerment deal within the next three months.
Leading automotive retailer McCarthy will announce a major new black economic empowerment deal within the next three months, chairman of MMH (McCarthy Motor Holdings) Brand Pretorius says.
on Thursday quoted Pretorius as saying the empowerment stake would likely to be more than 25 per cent. The move would involve the acquisition of equity in South Africa's largest dealership network and was currently under negotiation, he said.
"We are working hard to bring in major (black economic empowerment) partners as important shareholders," said Pretorius. "This will be the most significant change this year."
He said the planned partnership with empowerment players "makes sense from a strategic, business and corporate citizenship point of view", adding that the stake would “water down the large stake banks hold in McCarthy”.
Pretorius said the deal would meet the expectations of McCarthy's suppliers, who were keen to see larger black involvement in the group.
McCarthy Motor Holdings announced on Wednesday that it had increased its revenue by 23,6 per cent to R11,5 billion for the financial year that ended June 30 2002.
Pretorius said McCarthy Motor Holdings and its financial services division delivered a profit of R322 million - an increase of 50,3 per cent: “Retail vehicle sales showed growth with 62 134 units sold (seven per cent improvement). McCarthy’s share of the national dealer market rose to 12,7 per cent of the new vehicle market and 10,7 per cent of the used vehicle market.”
Original article from Car