Barloworld shed a large portion of its business after completing the sale of its motor retail business for R856m with a further R150m expected to be paid over the next two years, according to Business Day.
According to the group, the sale of the division comes after a decision was made to pivot the business away from vehicle sales and to “asset-light and cash-generative industrial sectors, based on a business-to-business operating model”.
The announcement was received positively on the JSE, with Barloworld (BAW) shares holding firm and sitting 2% higher at the time of writing.
Barloworld will focus on industrial processing; capital equipment and food services going forward and will reassess its vehicle rental and leasing business over the next two years with a potential sale proposed in the pipeline.
These parts of the business will be closely monitored during the post-pandemic recovery period.