SOURCE: RCI Southern Africa
December 20, 2000
Cendant Corporation announced yesterday from its headquarters in New York, USA, that RCI Europe, a wholly owned
subsidiary, has acquired RCI Southern Africa from Avis Southern Africa for R357 million. The transaction is subject
to customary regulatory approvals and is expected to close in the first quarter of 2001.
RCI Southern Africa, formerly a 75%-owned subsidiary of Avis Southern Africa, will now fall under Cendant's global
RCI operation, based in New Jersey, USA. The balance of shares as owned by the management of RCI Southern Africa,
formed part of the sale to Cendant.
The purchase agreement includes the acquisition of the 50 percent ownership stake in RCI Pacific not currently
owned by Cendant. RCI Pacific has been under the stewardship of RCI Southern Africa for the last two years.
For the leading holiday exchange and travel organisation in Southern Africa, this return to the "mother ship,"
follows a 17-year period during which the organisation operated under license on an autonomous basis.
The acquisition by Cendant is in line with its vision for RCI to become the market leaders in global travel and
leisure - thereby extending its products and services beyond timeshare exchange.
Ken May, RCI LLC's Chief Executive Officer, said RCI Southern Africa, with its 180,000-strong member base and 184
affiliated resorts, is seen as a turnkey operation which will serve as flagship for RCI's growth throughout sub-Saharan
Africa.
A strong believer in how "brand positioning, product quality, customer service and targeted distribution can
drive sustainable value," May said the RCI Southern African organisation served as an ideal example of this
successful formula.
This is reflected by the organisation's status as market leaders in South Africa with close on eight out of ten
South African consumers being familiar with the RCI brand.
Ivor Clucas, MD of RCI Southern Africa, said he saw his organisation's re-entry into the global fold as a tremendously
positive move.
"Our two organisations are so well aligned - our strategies on growth in the timeshare industry and the broader
leisure industry are exactly matched and we look forward to leveraging our capacity in a consolidated vehicle,"
he said.
For further information, please contact Lauren de Wet at RCI Southern Africa on 011 258 0127 or 083 633 1529 or
email ldewet@rci.co.za. Alternatively, contact Janine Letizia on 011 258
0142 or 083 633 5735.
Web site: http://www.rci.co.za
SOURCE: RCI Southern Africa