JSE-listed Murray & Roberts (M&R) will acquire a further 17% interest in the Bombela Concession Company (BCC) for R405-million, taking its overall stake in BCC to 50%.
BCC was established to manage the design, partial financing, delivery, operation and maintenance of the Gautrain rapid rail link, in Gauteng.
Subsequent to the December 2016 settlement of certain dispute in relation to the development of the Gautrain, Bouygues Travaux Publics and Bombardier Transportation have decided to divest from BCC, with each agreeing to sell an 8.5% interest in BCC to M&R.
The acquisition is being undertaken as part of M&R’s broader capital allocation strategy, as the investment in BCC provides strong returns in the short to medium term, while the group continues to seek potential acquisitions that would complement its three operating platforms.
Edited by: Creamer Media Reporter
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