Motus Holdings lists on the JSE today ending a multi-year journey to create more value for shareholders of Imperial Holdings. The automotive group has been unbundled from parent company Imperial Holdings, which changes its name on 5 December to Imperial Logistics.
Imperial shareholders are getting one Motus share for each Imperial share in the unbundling, giving them the choice between the consumer-facing automotive business or the logistics business, which has a corporate client base. The decision to separate the two was taken after a strategic review found there were few operational synergies between them. Motus was created as a separate holding company last year and will now be able to access debt and equity markets independently.
Acting CEO Ockert Janse van Rensburg said the unbundling and separate listing of Motus would enable it to operate in a more focused and efficient manner, while at the same time providing shareholders with an opportunity to participate directly in its success.
“As a result of our differentiated value proposition, investing in Motus means participating in the entire automotive value chain, which underpins our ability to create sustainable value through the cycle,” Janse van Rensburg said.
In an update last month, Imperial said Motus was expected to grow revenue, operating profit and headline earnings for the six months to end-December, before taking into account any costs related to the proposed unbundling. The group had maintained market share at just under 20% in a highly competitive market, with national vehicle sales declining marginally in the three months to end-September. Imperial said the trend of consumers trading down to entry-level models was continuing.
The company traces its roots back to 1948, when Imperial started as a motor dealership in the Johannesburg city centre. Today Motus operates across the automotive value chain in four areas, including import and distribution, retail and rental, motor-related financial services, and aftermarket parts.