JOHANNESBURG, Oct 31 (Reuters) - South Africa’s Imperial Holdings could split its vehicle import division from its logistics business, but will not make a decision before July next year, its chief executive said on Tuesday.
Imperial Logistics has operations in Africa and Europe while Imperial’s Motus division imports auto brands such as Mitsubishi and Kia.
“Preliminary work indicates that Imperial Logistics and Motus can achieve appropriate gearing and self-sustaining balance sheets by June 2018,” CEO Mark Lamberti said in a statement after the company’s annual general meeting.
The company is preparing to devolve functions performed by Imperial Holdings’ small head office to the two divisions.
“Various financial considerations have led to the conclusion that a separation will best be implemented by means of the unbundling of Motus to Imperial shareholders,” Lamberti said.
The company would base such a transaction on its audited accounts for the year to end-June 2018 and a decision on whether or not a separation will take place will not be made or announced before early next July, he said.
Standard Bank has been appointed as corporate finance and debt advisers, Lamberti said.
Reporting by TJ Strydom; editing by Jason Neely