Johannesburg - Listed construction group Basil Read reported yesterday that all the conditions precedent to the sale of its SprayPave and Armac businesses to Much Asphalt for R78.64 million cash had either been fulfilled or waived.
It said the transaction had become unconditional in accordance with the terms of the sale agreement and would be completed with an effective date of February 1.
The disposal of the businesses follows Basil Read last year receiving an unsolicited approach from Much Asphalt to acquire the two businesses.
SprayPave, which manufactures and supplies bitumen, modified binders and emulsions for local road construction, has acquired a bitumen reactor plant from New Zealand-based Technix Industries.
Armac owns immovable property in Johannesburg, Cape Town and Durban, from which SprayPave operates, and certain plants and equipment that are leased by SprayPave.
Basil Read said previously that the proceeds from the transaction would be used to reduce capital management initiatives.
The sale of the businesses follows Basil Read in 2014 developing an 18-month turnaround strategy that involved the critical evaluation of the groups’ various businesses and assets into core and non-core categories.
Shares were unchanged at R3.55.
BUSINESS REPORT