Update on Disposal of Iberian Equipment Operations Barloworld Limited (Incorporated in the Republic of South Africa) (Registration number 1918/000095/06) (Income Tax Registration number 9000/051/71/5) (JSE Share code: BAW) (JSE ISIN: ZAE000026639) (Share code: BAWP) (JSE ISIN: ZAE000026647) (Namibian Stock Exchange share code: BWL) (“Barloworld” or “the Company”) Update on Disposal of Iberian Equipment Operations The Company previously announced that it had entered into a Sale Agreement for the disposal of the Iberian Equipment operations. The agreement was subject to the following conditions precedent: - Spanish and Portuguese competition approval - Consent and release by the group’s lenders under various funding agreements. The Company is pleased to announce that on 5 June 2018 all conditions precedent were fulfilled and the transaction closed on 11 June 2018. The initial payment of €142 million (R2 182 million) was received on closing and the balance of the proceeds will be received in terms of the agreement. Optimal deployment of capital. At the results presentation on 21 May 2018 the Company outlined its focus on reducing capital deployed where the returns are below the Company’s hurdle rates of return. The group currently has up to R8 000 million which is under consideration: - Equipment Iberia: R2 400 million - Automotive Avis Fleet Leasing: R2 000 million – R4 000 million - Equipment southern Africa: R2 000 million The closing of the sale of Equipment Iberia is the first milestone in redeploying the group’s capital. The Company previously indicated that it is looking at various options to deploy capital into businesses that exceed its hurdle rate of return and is focussed on improving the Company’s return on equity to exceed its cost of equity within the next 18 months. 12 June 2018 J.P. Morgan Equities South Africa (Pty) Ltd. Date: 12/06/2018 02:38:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
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