Industrials group Barloworld announced on Thursday that it had sold 25 percent of its local and African logistics operations to an empowerment consortium for approximately R118-million.

The group said that the transaction would lead to the formation of a new company Barloworld Logistics Africa which would have net assets in the region of R472-million and annual revenues exceeding R600-million.

The stake was sold to Letsema Holdings, which is headed by Isaac Shongwe.

Barloworld said that Shongwe would play an active role in the business development and transformation of Barloworld Logistics Africa as well as being appointed to the board as an executive director.

The deal is effective from August 1, 2005.

Barloworld shares slipped five cents to end at 99.95 rand on the JSE on Thursday.

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