Construction and engineering group Murray & Roberts (M&R) has announced its intention to sell its infrastructure and building units, as well as manufacturing business Genrec as part of ongoing moves to focus on the global natural resources markets of oil and gas, metals and minerals and power and water.
CEO Henry Laas said in a statement that negotiations with prospective buyers for the businesses were at an advanced stage and the infrastructure and building and Genrec units had been classified as “discontinued operations” in its financial statements.
Inside the Genrec facility
The transactions would exclude M&R’s investment in the Bombela Concession Company, Bombela Civil Joint Venture and Bombela Operating Company, as well as the operations in the Middle East, where current projects are expected to be completed by December 2017 and where no new projects were being pursued.
In the year to June 30, the Southern Africa construction operations achieved an operational profit of R68 million, slightly up on the R56 million achieved in 2015. Genrec, however, reported a loss of R108 million, from a profit of R18 million last year. The loss was attributed to an impairment of property, plant and equipment, as well as operating losses.