Coatings firm Barloworld Coatings has sold a 15% stake in its automotive refinish distribution business to empowerment consortium Izingwe, led by South African businessman Sipho Pityana, the company said on Thursday.

"We expect the Izingwe team, who have not sought vendor finance for the transaction, to play an important role in the development of our market leading automotive re-finish business," Barloworld Coatings CEO Andre Lamprecht said.

Barloworld Coatings acquired its interest in the automotive re-finish business, Prostart Investments, in 2006 and announced at the time that it would sell a stake to black investors.

Diversified industrial group Barloworld, which also owns automotive, construction equipment, cement and logistics businesses, has come under fire this year from its largest shareholder, the Public Investment Corporation, for supposedly dragging its feet in implementing black economic empowerment policies.

However, the group has since said it would announce a BEE transaction shortly after the unbundling of major subsidiary, cement company, PPC, sometime this year.

Shares in Barloworld were 1,13% higher on Thursday morning, at R191,20 a share, by 11:40.

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