Who Owns Barloworld Company?

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Who Owns Barloworld Limited?

The R23 billion acquisition of Barloworld Limited signifies a major shift in its ownership, leading to its delisting from the JSE. This event highlights how ownership impacts a company's direction and accountability.

Barloworld, founded in 1902, has a rich history in industrial distribution. Understanding its ownership evolution is key to grasping its past performance and future potential.

Who owns Barloworld Limited?

Barloworld Limited's ownership structure has undergone a significant transformation with the recent approval of its acquisition for R23 billion. This transaction will result in the company's delisting from the Johannesburg Stock Exchange (JSE), marking a new chapter in its history. The company, which reported a revenue of R41.9 billion in its 2024 financial year and employed 6,234 individuals, had a market capitalization of approximately R22.24 billion as of September 30, 2024. This acquisition is led by a consortium that includes a management-linked entity and a Saudi Arabian investor group, fundamentally altering its stakeholder landscape.

Historically, Barloworld was founded by Major Ernest (Billy) Barlow in 1902. Over the decades, its ownership has evolved, incorporating significant stakes from institutional investors before this latest move to private ownership. This transition to private hands is a critical factor for stakeholders to consider when evaluating the company’s strategic direction and operational focus moving forward. For a deeper understanding of the external factors influencing such companies, a Barloworld PESTEL Analysis can provide valuable insights.

The origins of Barloworld trace back to 1902 with Major Ernest (Billy) Barlow establishing Thomas Barlow & Sons in Durban, South Africa. Initially focused on trading wool products, the business soon expanded into engineering supplies, laying the groundwork for its future industrial focus.

Founding Vision

Major Ernest (Billy) Barlow founded the company with an initial capital of £1,000. His early ventures focused on trade, quickly broadening to include essential engineering supplies.

Early Leadership Transition

Following Major Barlow's death in 1921, his wife, Anne Barlow, took over as governing director. This ensured continuity during a critical early period.

Strategic Partnership

Charles Sydney 'Punch' Barlow secured the official Caterpillar distributorship in 1927. This partnership became a cornerstone of the company's long-term success in the industrial sector.

Public Offering

The company formally listed on the Johannesburg Stock Exchange in 1940. This move signified its growth and transition towards broader public ownership.

Family Influence

While specific early shareholding details are scarce, the founding family maintained significant influence for decades. 'Punch' Barlow was instrumental in the company's substantial expansion.

Headquarters Relocation

The company relocated its headquarters to Johannesburg prior to its JSE listing. This move coincided with its growing national presence and strategic ambitions.

The early ownership of the company was characterized by strong family involvement, with Major Ernest Barlow laying the initial foundation and his son, Charles Sydney 'Punch' Barlow, driving key strategic decisions that shaped its future. The formal listing on the Johannesburg Stock Exchange in 1940 marked a significant shift towards public ownership, though the family's legacy continued to influence the company's direction.

Founding and Early Development

The company's journey began in 1902, with a modest start and a clear vision for expansion. Key early decisions, particularly the securing of the Caterpillar distributorship, were crucial for its trajectory.

• Founded in 1902 by Major Ernest (Billy) Barlow.
• Initial capital was reportedly £1,000.
• Early business included wool products and engineering supplies.
• Anne Barlow served as governing director after Major Barlow's death.
• Charles Sydney 'Punch' Barlow was instrumental in securing the Caterpillar distributorship in 1927.
• The company formally listed on the JSE in 1940.
• The Growth Strategy of Barloworld was significantly influenced by these early foundations.

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Barloworld's journey from a diversified conglomerate to a focused industrial distributor has been marked by significant ownership shifts since its 1940 JSE listing. Key strategic divestitures and a major acquisition offer in late 2024 are reshaping its shareholder landscape, moving it towards private ownership.

The ownership structure of Barloworld is set for a substantial transformation following a R23 billion acquisition offer made in December 2024. This offer, from a consortium led by Entsha Proprietary Limited and Gulf Falcon Holding Limited (a subsidiary of Saudi Arabia's Zahid Group), was valued at approximately $1.3 billion. The acquisition received conditional approval from the Competition Tribunal in August 2025, paving the way for Barloworld's delisting from the JSE and A2X exchanges. This move signifies a transition from public trading to private ownership, altering the dynamics of Barloworld's shareholder base and governance.

Key Stakeholders and Ownership Transition

Understanding who owns Barloworld is crucial for grasping its strategic direction. The company's history shows a progression from a broad conglomerate to a specialized industrial distributor.

• Major institutional investors like the PIC and Silchester International Investors LLP were significant Barloworld shareholders prior to the acquisition offer.
• The Zahid Group, through its subsidiary Gulf Falcon Holding Limited, is a key player in the proposed acquisition.
• Entsha Proprietary Limited, a black-owned South African entity, is also a principal in the consortium acquiring Barloworld.
• The acquisition by Newco will lead to Barloworld's delisting, shifting it from public to private ownership.
• This change impacts how Barloworld company ownership details are accessed and how the Target Market of Barloworld is served.

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As of the 2024 financial year, Barloworld's board of directors provided critical oversight, with Dr Lulu Gwagwa serving as Chairperson since October 1, 2021. The board structure includes both Non-Executive and Executive Directors, ensuring a comprehensive governance approach.

Historically, Barloworld operated under a one-share-one-vote system for its ordinary shares, a standard for JSE-listed companies. However, the recent acquisition process, including a proposed buyout led by CEO Dominic Sewela, brought shareholder interests and board decisions into sharp focus. Concerns were raised by major shareholders, such as Silchester International Investors, regarding potential conflicts of interest. Despite initial opposition that led to a 'Standby Offer' in February 2025, the Public Investment Corporation (PIC), a significant institutional investor, ultimately supported the bid in April 2025. This support was contingent on commitments to employee and empowerment ownership. The Competition Tribunal's approval in August 2025 was also conditional on public interest factors, particularly employment and the empowerment of Historically Disadvantaged Persons (HDPs), which will shape the future Barloworld ownership structure.

Understanding Barloworld's Shareholder Landscape

Barloworld's ownership structure is dynamic, influenced by major institutional investors and strategic acquisition bids. The interplay between executive management, board decisions, and shareholder sentiment is crucial for understanding Barloworld company ownership details.

• The Public Investment Corporation (PIC) is a key institutional investor.
• Silchester International Investors has been a notable shareholder.
• The CEO of Barloworld, Dominic Sewela, was involved in a proposed buyout.
• Acquisition approvals are subject to public interest conditions.
• Understanding Barloworld shareholders is key to grasping Barloworld ownership.

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The ownership landscape of Barloworld has undergone a significant transformation in recent years, culminating in a major shift towards private ownership. This transition is driven by a substantial acquisition that will see the company delisted from public exchanges, marking a new chapter in its corporate history.

The R23 billion acquisition by Newco, a consortium formed by Entsha Proprietary Limited and Gulf Falcon Holding Limited (a subsidiary of Saudi Arabia's Zahid Group), represents the most significant recent development. This transaction, announced in December 2024 and approved by the Competition Tribunal in August 2025, will transition Barloworld from a publicly traded entity on the JSE and A2X to a privately held company. The offer price of R123.10 per share represented a substantial 87% premium over the company's 30-day average share price as of April 12, 2024. This move reflects a strategic realignment and a new phase of ownership for the industrial group.

Empowerment Transaction Mandate

The Competition Tribunal's approval in August 2025 included a crucial two-phase empowerment transaction. This initiative aims to secure a collective 13.5% shareholding for Historically Disadvantaged Persons (HDPs) and employees post-delisting.

Phased Shareholding Increase

Phase 1 retains the Barloworld Empowerment Foundation's existing 3.5% stake. Phase 2 requires acquiring an additional 10% within 24 months of delisting, split equally between an employee share ownership program (ESOP) and a women-led HDP consortium.

Strategic Business Focus

Barloworld has been strategically concentrating on its core industrial equipment and services and consumer industries segments. This focus is evidenced by the unbundling of its car rental and leasing business, Zeda, in December 2022.

Financial Performance Indicators

The company reported revenue of R41.9 billion for 2024, a 6.9% decrease from the previous year. Operating profit from core trading activities saw a 12.6% decline to R3.8 billion, with further decreases in EPS and HEPS anticipated for the six months ending March 31, 2025.

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