EARTH-MOVING EQUIPMENT
Barloworld sells loss-making Iberian business
Barloworld, through its wholly owned UK subsidiary Barloworld UK, is selling its loss-making Iberian business Barloworld International to Italian group Tesa. The group had been holding the assets and liabilities of its Iberian Caterpillar (CAT) earth-moving and power-generation equipment in Spain and Portugal for sale since the end of September 2017. Proceeds will stay offshore to fund growth initiatives. The sale price is at a small premium to the net asset value (NAV) of the business at September 30 2017, or 6.4% of Barloworld’s market capitalisation at the date of signing of the agreement, which is expected to close no later than July 2. The overall proceeds of the transaction calculated at €15.10 against the rand are estimated to be €160m. The group’s share price fell as much as 6.76% on Wednesday. “It is a good sale as NAV would have been good, so a small premium is slightly better,” Mark Hodgson, an analyst at Avior Capital Markets, said on Wednesday. He said Barloworld was lo...
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