Buyout 'hurt SA's reputation'

But consortium says transaction ensures long-term sustainability.

- Roy Cokayne

K-based Silchester International Investors, a major investor in JSE-listed Barloworld, believes the way the company's buyout transaction to a consortium was managed "damages South Africa's reputation as an investment destination for international investors".

Silchester spokesperson Tim Linehan told Moneyweb late last week that it believes recent disclosures by Barloworld, and commentary from other shareholders, make it more, rather than less, likely the consortium's efforts to privatise Barloworld will succeed.

"This reflects negatively on Barloworld's management and the independent board," he said.

Linehan's comments come after the Competition Tribunal on Friday conditionally approved the proposed transaction, involving the acquisition of Barloworld by a management-led consortium, Newco, and Saudi Arabia's Zahid Group.

It has become apparent that Silchester has reduced its shareholding in Barloworld over the past six months.

Linehan confirmed that as of 13 August, Silchester controls 17.2% of Barloworld's issued share capital but it has not had any substantive discussions with the consortium in the past six months.

Silchester confirmed in February 2025 that it then controlled 17.7% of Barloworld's shares.

"We don't have any additional information that we would like to share at this time, whether on or off the record," said Linehan.