COMPANY NEWS IN BRIEF
Industrial group Barloworld expects its car rental and leasing business Avis Budget to be listed under the name Zeda with effect from 13 December.
Subject to approval from the bourse, Barloworld shareholders will receive one Zeda share for each Barloworld share held.
The unbundling represents a completion of Barloworld’s non-core asset sales programme. The firm has been looking to pare back its focus and streamlined business its strategy and capital allocation, and will be focused on two main areas, industrial equipment and services, such as earthmoving equipment, and consumer industries, which includes food, beverages and pharmaceuticals.
Zeda trades under the market leading Avis and Budget brands in South Africa and 10 other sub-Saharan African countries and was established in Bloemfontein in 1967. Apart from rental and leasing services, the business also sells cars through 14 Avis Car sales dealerships.
The business unit was Barloworld's second-largest employer, accounting for 21% of its workforce, and contributed about 12% of group revenue, or just under R6 billion, in Barloworld's year to end-September.
The business' strategy of diversifying its offering and increasing efforts to drive subscription products continues to pay off, Barloworld said on Monday, and benefitted in 2022 due to sustained demand for subscription offerings, a solid base of insurance business (replacement), and the recovery in domestic and corporate travel. Operating profit surged 150% to R871 million to end-September, surpassing pre-pandemic levels.-Fin24