South African engineering and construction service provider Murray Roberts has announced the sale of its African construction products platform comprising the group’s manufacturing businesses for US$130.1mn
The decision has been taken by the company in an effort to reduce its debts. The sale will, however, not include its Hall Longmore property.
The company said in a statement, “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.”
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.
Murray Roberts group chief executive Henry Laas said, “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 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.”
The sale of group businesses follows the successful conclusion of the disposal of the Steel Business in 2012 and Union Carriage Wagon (UCW) early in 2013.