SAUDI COMPANY WANTS TO BUY BARLOWORLD

Saudi Arabia’s Zahid Group has indicated that it wants to buy all the shares of the local company Barloworld.

Barloworld, based in Johannesburg, is the African distributor of the leading manufacturer of construction and mining equipment, Caterpillar. This includes countries like South Africa, Zambia, Angola, the Democratic Republic of Congo, and Malawi.

The offer of R120 per share was made by the group. After the announcement, the stock increased by 19% at the Johannesburg Stock Exchange.

Because the offer won’t be reduced by the R3.10 dividend Barloworld declared on 22 November, the value unlock has been taken to R123.10 per share.

The Zahid Group is no stranger to Barloworld as it has been a long-term shareholder of the company. If this deal goes through, Barloworld will be taken private.

BusinessTech reports that the Zahid Group, a distributor of heavy equipment machinery, started buying Barloworld shares four years ago. Zahid Tractor and Heavy Machinery Co. owns 18.9% of the South African company.

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