BARLOWORLD HAS sold a 25% stake in its South African and African logistics business to an empowerment consortium led by industry veteran Isaac Shongwe and his company, Letsema Holdings. The deal is estimated to be worth R118-million (subject to final net asset value on the effective date). Effective from August 1, the transaction will lead to the formation of a new company, Barloworld Logistics Africa, which will house all the South African and African business activities of Barloworld Logistics. The new company’s net assets will amount to around R472-million with annual revenues exceeding R600-million, said Barloworld Logistics CEO Paul Stuiver. “The empowerment consortium led by Shongwe will play an active role in the business development and transformation of Barloworld Logistics Africa with Shongwe joining the board as an executive director,” he added. The balance of Barloworld Logistics’ business in the UK, Europe, USA and the Middle East will remain directly owned by Barloworld Logistics. The empowerment consortium comprises Letsema Holdings (60%), CEPWAWU Investments, a trade union investment company (20%), while the remaining 20% has been placed in a trust to attract other black entrepreneurs who will be similarly committed to joining and developing the business. “The potential for logistics and supply chain management in South Africa and the rest of Africa is significant,” says Isaac Shongwe. “Through our new partnership, Barloworld Logistics Africa is ideally placed to capitalise on this opportunity."
