Barloworld revenue drops 10%, takeover phase gets into gear

BARLOWORLD said revenue from its heavy equipment and starch and glucose sales fell by 10% to R33.6 billion in the 11 months to August 31.

- EDWARD WEST

The group, which is scheduled to delist from the JSE following a takeover by a consortium comprising Saudi Arabia-based Zahid Group, Barloworld CEO Dominic Sewela and staff, said in an operational update yesterday that earnings before interest, tax, depreciation, and amortisation (EBITDA) is expected to decline by 9% to R3.8 billion over the period.

The share price increased by 1.7% to R119.51 on the JSE Thursday morning, well up from R85.05 a year before. The takeover offer per share is R120 in cash, with a total value unlock of R123.10 per share when considering a R3.10 declared dividend. The extended takeover long-stop date is December 11, 2025, pending some regulatory approvals.

The Equipment Southern Africa division generated R21.8 billion in revenue, 3.9% lower than the prior period at R22.7bn, the operational update said yesterday. Excluding the impact of the stronger rand against the dollar, revenue declined by 1.5%.