Barloworld is selling 10% of the company to black investors in a ZAR2.4 billion (USD296.4 million) deal, according to terms set out in a black ownership initiative.

The sale of the 10% shareholding in Barloworld's ordinary share capital will bring effective black ownership of Barloworld's South African operations to about 29%.

Barloworld's black ownership initiative comprises four components:

• a strategic black component, to hold in aggregate 5.88% of Barloworld's issued ordinary share capital.
• an employee component, to hold in aggregate 2.39% of Barloworld's issued ordinary share capital.
• an employee trust component, to hold 0.78% of Barloworld's issued ordinary share capital.
• community service group component, to hold in aggregate 0.95% of Barloworld's issued ordinary share capital.

The ZAR2.4 billon (USD296.4 million) transaction price is based on the 30-day volume weighted average share price of ZAR103.87 (USD12.83) per ordinary share, calculated for the 30 trading days ended on 6 June 2008.

A shareholders' general meeting to implement the black ownership initiative will be held on 12 August and the meeting's results will be released on JSE (Johannesburg's Securities Exchange) Stock Exchange News Service the same day.

Barloworld expects the new shares to be listed on the Johannesburg Stock Exchange on 25 August.