A stake in Clough
Murray & Roberts recently acquired a strategic interest in leading Australian engineering and contracting group Clough. The transaction results in Murray & Roberts holding an initial 29,28% of the shares in Clough for a consideration of A$81,6 million (approximately R420 million at prevailing exchange rates.)

Clough is one of Australia’s largest multidisciplinary engineering and contracting groups and is listed on the Australian Stock Exchange. It operates globally in industry sectors such as onshore and offshore oil and gas, petrochemicals, minerals, infrastructure and property and has a significant capability in project management, engineering and construction and facilities installation, operations and maintenance.

The transaction provides Murray & Roberts with an operational presence in Southeast Asia as the Group pursues its Globalising Murray & Roberts strategy. The strategic relationship already in effect has created a framework for expanded global opportunities and should deliver significant advantages to both partners as their geographic and specialist focuses and strengths are blended.

Commenting on the transaction, Murray & Roberts Group CE, Brian Bruce, said: “We expect that the strategic relationship will add further value by introducing Clough into regions of the world where Murray & Roberts has a leading presence, with a particular focus on new oil and gas business opportunities in the Middle East and west coast of Africa. In turn, it provides Murray & Roberts with access into the engineering and contracting oil and gas sector.”

David Singleton, CEO and MD of Clough, said: “In Murray & Roberts we saw a partner with complementary vision and with a culture that fits with our own. The alliance will greatly enhance our competitiveness, not only in Australia but also in Southeast Asia.

“We believe that global scale is increasingly important and we sought a partner in our general market sector who also had a complementary market position. Murray & Roberts’ position in Africa, with a vision towards Asia, fitted the criteria.”

In terms of the agreement Murray & Roberts has initially:
• subscribed for 60 million new shares in Clough for a total consideration of A$40.8 million;
• acquired 60 million shares in Clough from McRae Investments (representing the Clough family interests in Clough) for a total consideration of A$40.8 million; and
• appointed two directors to join the Clough board of directors.

The transaction has been funded by Murray & Roberts from internal capacity and is not expected to have a material effect on the financial results for the year to 30 June 2005.

Integrating Cementation
Murray & Roberts is integrating its mining contracting assets with those of newly acquired Cementation.

Murray & Roberts Cementation has been formed from the activities of Cementation Africa, Murray & Roberts RUC and a 26% empowerment partner. Sean Flanagan, executive director responsible for mining, reports that the integration of Cementation Africa and RUC is proceeding well with the appointment of a new leadership team led by former RUC MD, Henry Laas and the merging of the operations into a single office environment in Bedfordview.

The Cementation mining business in Canada reports through the United Kingdom under international executive Peter Adams and the Australian market will continue to be served from South Africa.

Sale of Unitrans
Murray & Roberts has sold its 44% interest in Unitrans to Steinhoff International for a consideration of R935 million. The disposal of the non-core investment was concluded after approval by the Competition Tribunal in January.