Listed construction and engineering group Murray & Roberts (M&R) has acquired a further interest in the Bombela Concession Company (BCC), the special purpose vehicle established for the design, partial financing, delivery, operation and maintenance of the Gautrain Rapid Rail Link, for R405million.
The group said yesterday that it had concluded a memorandum of understanding to increase its effective shareholding in BCC by 17% to 50% through the acquisition of the 8.5% shareholding held in BCC by both Bouygues Travaux Publics and Bombardier Transportation UK.
“This 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 look for potential acquisitions that would complement its three operating platforms,” it said.
M&R said Bouygues and Bombardier had decided to divest from BCC following the settlement in December of disputes related to the development period. When BCC was incorporated, M&R held a 25percent shareholding in the company and increased this to 33percent in 2011.