Raubex: Two acquisitions in line with strategy

Raubex had acquired majority shareholdings in two independent companies for a total of R108.7 million, the road construction group said yesterday. It had acquired 60 percent of KwaZulu-Natal-based asphalt products maker Shisalanga for R38.4m and 70 percent in both the concrete operations of Oranje Mynbou en Vervoer (OMV) situated near Stilfontein and in its Gypsum operations near Potchefstroom for R70.3m in cash. All the necessary regulatory approvals for all the acquisitions had been received. The Shisalanga acquisition is effective from June 1 and the OMV purchase from July 1. Rudolf Fourie, the chief executive of Raubex, said the acquisitions were in line with the firm’s strategy to reinforce its vertically integrated model and were a good cultural fit for the group. “They will extend our asphalt presence into northern KwaZulu-Natal while providing Raumix with a footprint in the North West and northern Free State provinces. Our strong balance sheet and cash position allows us to… explore further earnings-enhancing [deals] and strengthen our vertically integrated model,” Fourie said. Raubex shares rose 0.1 percent to close at R20.55 on the JSE yesterday. – Roy Cokayne