Southern Palace Group-led Consortium Acquires Murray & Roberts Infrastructure & Building Business
01 November 2016
Johannesburg, 01 November 2016 – Murray & Roberts and Southern Palace Group today announced the purchase of the Murray & Roberts Southern African Infrastructure & Building (“I&B”) businesses, by a consortium led by the Southern Palace Group of Companies (Proprietary) Limited (“Southern Palace”). The fully-funded purchase consideration is R314 million.
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.”
I&B is a leading infrastructure and building business, comprising eight divisions: (i) Murray & Roberts Buildings (Gauteng), (ii) Murray & Roberts Western Cape (iii) Murray & Roberts Infrastructure, (iv) Murray & Roberts Botswana, (v) Murray & Roberts Plant, (vi) Murray & Roberts Developments, (vii) Concor Opencast Mining (viii) Dynamic Concrete Solutions (Proprietary) Limited (Namibia) and (ix) the Murray & Roberts share in the Medupi Civils Joint Venture.
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. “
Southern Palace is a wholly black-owned and managed South African, diversified industrial holding company with interests in numerous well-established businesses. Southern Palace has an established track record of successful investment transactions in the Southern African market.
“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”, adds Tseki.
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.
“This transaction is about Murray & Roberts exiting a specific market sector. Murray & Roberts remains committed to South Africa and the rest of Africa and will continue to support private and public sector clients in its chosen market sectors. It’s the Group’s vision, by 2025, to be a leading multinational group, which applies its project lifecycle capabilities to optimise client’s fixed capital investment in the global natural resources markets. This transaction allows the Group to focus its business on the oil & gas, metals & minerals, and power & water market sectors, which present long-term sustainable growth potential to the Group”, concludes Laas.
For further information contact:
Murray & Roberts
Group Investor and Media Executive
Southern Palace Group
Cell: 083 349 5182
About Murray & Roberts
Murray & Roberts has a long and proud heritage of more than a century and is today recognised as a multinational project lifecycle group. It’s the Group’s vision, by 2025, to be a leading multinational group that applies its project lifecycle capabilities to optimise client’s fixed capital investment. The Group achieves this by focusing its expertise and capacity on delivering sustainable and fit-for-purpose project engineering, procurement, construction, commissioning, operations and maintenance solutions.
The Group delivers its capabilities into three global market sectors: oil & gas; metals & minerals and power & water.
Murray & Roberts is headquartered in Johannesburg, South Africa, and is listed on the JSE Limited. It has offices in:
- South Africa, Mozambique, Zambia and Ghana
- Australia and South Korea
- North America
- USA and Canada
Murray & Roberts is a group of world-class companies and brands aligned to the same purpose and vision, and guided by the same set of values.
More information is available at www.murrob.com
About Southern Palace Group
Southern Palace is a wholly black owned and managed South African, diversified industrial holding company established in 2002 with interests in numerous well-established businesses. Southern Palace has built up a track record of successful investment transactions.
It has presence in steel products manufacturing and recycling, automotive trading and manufacturing, real estate and technology and telecommunications. Some of our past and present investments include MAN Truck and Bus Centurion, Thomas Tyres, Altech Fleetcall, Altech Alcom-Matomo, Altech Motorola Radio Distribution, Scaw Metals Group, Teljoy Business Systems, Canvas and Tents Manufacturing, Growthpoint Properties and Huawei Technologies Africa.
More information is available at www.southernpalace.co.za