Barloworld to reduce stake in Avis Fleet
The sale of the interest in Avis would be finalised in the next 12 months.
South Africa-based logistics and fleet management group Barloworld said it will reduce its interest in subsidiary Avis Fleet to 50 percent because of low returns from the vehicle leasing and fleet management company, according to Business Day.
The sale of the interest in Avis, for an undisclosed amount, would be finalised in the next 12 months, Barloworld said on Monday.
CEO Dominic Sewela (pictured) said the company will bring in equity partners to take up a 50 percent stake.
Barloworld, which has a market capitalisation of R26.3 billion, declined to divulge to Business Day the value of the Avis Fleet business. In the 2018 financial year, Avis Fleet’s revenue was R3.3 billion, while operating profit was R641million.
Barloworld said the move was part of a strategy to unlock value in underlying businesses “and the focus on disciplined allocation of capital management”.
Avis suffered a blow in 2018 when the City of Johannesburg did not renew a fleet tender for non-specialised vehicles. The tender was reportedly worth R1.2 billion.