Southern Palace is a wholly black-owned and managed diversified South African industrial holding company with interests in numerous well-established businesses.
"This transaction supports Murray & Roberts' long-term strategy and creates the first major black-owned infrastructure business in SA," Henry Laas, Murray & Roberts group CEO, said on Tuesday, 1 November.
"We... believe that the transaction is in the best interests of both Murray & Roberts and the infrastructure and building businesses," he said.
These businesses comprise Murray & Roberts Buildings (Gauteng), Murray & Roberts Western Cape, Murray & Roberts Infrastructure, Murray & Roberts Botswana, Murray & Roberts Plant, Murray & Roberts Developments, Concor Opencast Mining, Dynamic Concrete Solutions Namibia, and Murray & Roberts' share in the Medupi power plant civils joint venture.
"We are delighted to have concluded this transaction, which sees us acquiring a strong Southern African asset with vast capabilities," Southern Palace CEO Lucas Tseki said on Tuesday.
The value of the deal was calculated according to the R231m net asset value of the businesses as at the closing date of the transaction, and would be settled in cash on this date. This would probably be in the first quarter of 2017, said Ed Jardim, Murray & Roberts investor and media executive.
Murray & Roberts said it would provide an additional cash amount to enhance the company's balance sheet, taking the total purchase price up to R314m. "This is the amount which will be received as the fully funded payment consideration. Cash, which we will receive back when we are paid the R314m," Jardim said.
Source: Business Day
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