Murray & Roberts has sold its Southern African Infrastructure & Building (I&B) businesses to a consortium led by the Southern Palace Group of Companies for R314 million, creating a major black-owned infrastructure business.

The construction company announced in August that it would be shedding its I&B division in pursuit of a stronger focus on three key strategic drivers: global economic growth, global population growth, and continued urbanisation.

Henry Laas, Murray & Roberts Group Chief Executive, comments: “This transaction supports Murray & Robert’s long-term strategy and creates the first major black-owned infrastructure business in South Africa. We are pleased to announce Southern Palace as the new shareholder for the I&B businesses and believe that the transaction is in the best interests of both Murray & Roberts and the I&B businesses.”

Southern Palace is a wholly black-owned and managed South African, diversified industrial holding company with interests in numerous well-established businesses, and an established track record of successful investment transactions in the southern African market.

Lucas Tseki, Southern Palace Chief Executive Officer, comments: We are delighted to have concluded this transaction which sees us acquiring a strong southern African asset with vast capabilities and a proud heritage of 114 years. We intend to build upon this impressive track record to the benefit of all of our key stakeholders.”

“This acquisition is a key step in Southern Palace’s strategy of going beyond investment holding into operations. We look forward to partnering with the management team, with whom we intend establishing a long and profitable partnership,” Tseki adds.

 

Infrastructure & Building businesses

I&B is a leading infrastructure and building business, comprising eight divisions:

1. Murray & Roberts Buildings (Gauteng),
2. Murray & Roberts Western Cape
3. Murray & Roberts Infrastructure
4. Murray & Roberts Botswana
5. Murray & Roberts Plant
6. Murray & Roberts Developments
7. Concor Opencast Mining
8. Dynamic Concrete Solutions (Proprietary) Limited (Namibia)
9. The Murray & Roberts’ share in the Medupi Civils Joint Venture

This transaction excludes Murray & Roberts’ investment in the Bombela Concession Company, Bombela Civil Joint Venture and Bombela Operating Company, as well as the buildings business in the Middle East, where current projects are expected to be completed by December 2017 and no new projects are being pursued.