Murray & Roberts has announced the successful conclusion of the disposal of its Construction Products Africa operating platform (excluding Hall Longmore), comprising the Group’s manufacturing businesses. The group of businesses includes Much Asphalt, Rocla, Technicrete and Ocon Brick. The total cash consideration to be received in respect of the transaction is approximately R1 325 million before transaction costs. Negotiations with potential buyers for the sale of the Hall Longmore business are ongoing and shareholders will be advised in due course of the outcome thereof.
Henry Laas, group chief executive comments: “We are very pleased with the value achieved through this disposal process and we believe the market will share our sentiment. There was limited strategic fit between these businesses and Murray & Roberts’ future growth aspirations in engineering and construction. Divesting from the manufacturing businesses allows Murray & Roberts to reduce debt (excluding certain asset-based finance) on its South African balance sheet and invest in those market sectors and geographies that present the best long-term financial growth potential to shareholders.”
Much Asphalt was sold to a consortium comprising Capitalworks and certain senior management and executives of Much Asphalt. The Ocon Brick, Technicrete and Rocla businesses were sold to a consortium comprising of Capitalworks, RMB Ventures and certain senior management and executives of the businesses being sold.
These disposals follow the successful conclusion of the disposal of the Steel Business in 2012 and Union Carriage & Wagon (UCW) early in 2013. As per the respective sale agreements, partial proceeds have been received on both transactions.
“The successful conclusion of these disposals will support the Group in working towards its vision to be the leading diversified engineering and construction Group in the global underground mining market and in the natural resources and infrastructure sectors in selected emerging markets by 2020”, Laas concluded.