(26 September 2007 – Australia) National Australia Bank (NAB) has announced that it has agreed to sell its Commercial Fleet unit to Super Group Australia for A$342 million.NAB chief executive officer, John Stewart, said that while profitable the unit was not part of NAB’s core business.
Mr Stewart said that selling the Commercial Fleet business would enable NAB to concentrate on core capabilities and create sustainable growth in shareholder value.
The business had cash earnings of A$6 million in 2006 and contributed A$24 million to the groups earnings in 2007, including a one off A$22 million benefit due to the cessation of depreciation.
The sale was at a discount to the current carrying value. Had the assets been fully depreciated, the sale would have represented a small premium. The proceeds will be used in NAB’s general funding.
Robbie Blau, managing director, Super Group, said that the acquisition will expand Super Group’s fleet management offering and will be a strong fit with the business.
Commercial Fleet, based solely in Australia, specialises in the leasing and maintenance of commercial vehicles, buses, forklifts, trailers and other mobile equipment.