No offers yet for a deal, says Group Five

31 May 2017

Group Five says it remains some way from concluding an empowerment deal in terms of a settlement agreement with the government to transform SA's construction industry.

No offers yet for a deal, says Group Five

Critical to this was whether any proposal could enhance shareholder value, including by possibly unbundling certain businesses, it said. It was receiving inquiries about possible equity-based transactions at group and subsidiary level.

Seven JSE-listed construction and engineering groups will dispose of not less than a 40% economic interest in South African civil engineering and general building businesses or mentor up to three emerging construction companies.

"These [inquiries] will be reviewed by the board, the mergers and acquisitions subcommittee and independent advisers, who will then determine the next steps based on the best interests of the company and shareholders," the group said on Monday, 29 May.

"Group Five is not in possession of a bona fide offer, of a binding or nonbinding nature, for any assets of the group."

This comes as it grapples with a call by Allan Gray that it hold an extraordinary general meeting after the fund manager "lost faith" in the board.

While the reasons are not yet clear, Allan Gray, which holds 25% of Group Five on behalf of clients, said earlier in May that the company needed a fresh start with a reconstituted board. Group Five said on Monday that it was taking steps "to convene the requisite meeting as soon as reasonably possible".

Source: Business Day

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