BEE group acquires Murray & Roberts' infrastructure and building unit
Engineering and construction group, Murray and Roberts (M&R) sold its infrastructure and building business for R314 million to a black economic empowerment group‚ Firefly Investments.
The Johannesburg-based company will now focus on three core sectors – oil and gas, metals and minerals, and power and water – “which present long-term sustainable growth potential to the group,” Murray & Roberts Chief executive Henry Laas said on Tuesday.
“This transaction is about Murray & Roberts exiting a specific market sector,” he added.
The infrastructure and building businesses comprise civil engineering‚ general building‚ opencast mining‚ road and earthworks‚ among others.
Murray & Roberts said it would use the proceeds of the deal‚ which is still subject to shareholder and regulatory approval‚ to reduce its net debt.
The transaction excludes the Murray & Roberts group of companies' interests in the Bombela Concession Company‚ Bombela Civils Joint Venture‚ Bombela Operating Company and the Murray & Roberts Middle East operations.
Firefly Investments represents a consortium led by Southern Palace, a black-owned industrial group, which includes the Government Employees Pension Fund (GEPF) and members of MRIB’s management as shareholders.
“We are delighted to have concluded this transaction, which sees us acquiring a strong Southern African asset with vast capabilities,” Southern Palace CEO Lucas Tseki said.
In October, M&R sold Genrec Engineering, its only remaining manufacturing business, to Nisela Capital for R185 million.
M&R first announced its intention to sell its infrastructure unit in August when it also said it would look at selling Genrec.
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