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| Company |
Code |
Released |
Type |
Headline |
| National Australia Bank Limited |
NAB |
25 Sep, 2007, 11:01 |
ASSET |
National Australia Bank sells Commercial Fleet
business |
| Full Text of Announcement |
National Australia Bank sells Commercial Fleet
business
National Australia Bank Limited (NAB) today announced
that it had agreed to sell its Commercial Fleet
business to Super Group Australia Pty Limited, a
subsidiary of Super Group Limited.
Commercial Fleet specialises in the leasing and
maintenance of light to heavy duty commercial
vehicles, buses, forklifts, trailers and other mobile
equipment. Its operations are based solely in
Australia.
The Commercial Fleet business made $6 million cash
earnings in 2006. It also contributed $24 million to
NAB Group earnings in the first half of 2007 which
included a one off benefit of $22 million (net of tax)
as a result of the cessation of depreciation benefit
taken to the profit and loss statement.
The sale involves the transfer of assets for $342
million, which is at a discount to the current
carrying value of the assets, resulting from
accounting requirements that required NAB to cease
depreciation on the assets from 1 October 2006. Had
the assets been fully depreciated the sale would
represent a small premium to net assets.
NAB Group Chief Executive Officer, John Stewart, said
while Commercial Fleet has been a profitable part of
NAB since 1997, it is not part of NAB's core business.
"Super Group's expertise and activities in fleet
finance and management make it an ideal home for
Commercial Fleet, allowing NAB to concentrate on its
core capabilities by creating sustainable growth in
shareholder value," he said.
"NAB will continue to offer a full suite of
products to its customers by referring operating lease
requests within the Commercial Fleet asset categories
to Super Group."
Robbie Blau, Managing Director Super Group said,
"Commercial Fleet will expand Super Group's fleet
management offering in Australia. Fleet Australia,
Super Group's Australian fleet management business, is
an extensive motor vehicle fleet management and
leasing business in Australia and Commercial Fleet
will be a strong fit with that business."
The sale is subject to regulatory approvals and a
number of other conditions including final approval of
Super Group's debt funding and no material adverse
change to the business before completion. The proceeds
will be used as part of NAB Group's general funding.
About Super Group
Super Group Limited is a public company listed in the
"Transport Services" sector of the
Johannesburg Securities Exchange Limited. With
headquarters in Johannesburg, South Africa and group
companies in Australia, the United Kingdom and
numerous African countries, Super Group employs in
excess of 9,000 people.
Super Group is a broad-based supply chain business
offering a comprehensive range of services. There are
five operating divisions, namely Supply Chain
Management, Fleet Solutions, African Transport, Retail
Supply Chain and Automotive. These operating divisions
are supported by the Services division, comprising
group treasury, insurance and property.
In Australia Super Group operates Fleet Australia, a
major provider of fleet management and leasing
services for a wide range of passenger, commercial
vehicle and equipment to Australian companies and SMB
which is a leading provider of salary packaging and
novated leasing products.
For further information:
Media
Kerrina Lawrence
M: +61 (0) 417 034 738
Investor Relations
Hany Messieh
Ph: +61 3 8641 2312
M: +61 (0) 414 446 876 |
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