http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.15Change: 0.05
R/$ = 11.58Change: -0.02
Au 1195.87 $/ozChange: -1.05
Pt 1197.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 23, 2012

Basil Read sells TWP to WorleyParsons for R900m

Back
Construction|Engineering|Basil Read|LYT Architecture|PROJECT|Projects|Renewable Energy|Renewable-Energy|TWP|TWP Holdings|TWP Investments|WorleyParsons|Energy|Energy Projects|Mining|Services|Marius Heyns
Construction|Engineering|PROJECT|Projects|Renewable Energy|Renewable-Energy|TWP||Energy|Mining|Services|
construction|engineering|basil-read-company|lyt-architecture|project|projects|renewable-energy|renewable-energy-company|twp|twp-holdings|twp-investments|worleyparsons|energy|energy-projects|mining|services|marius-heyns
© Reuse this



South African construction and engineering company Basil Read on Tuesday announced it would sell TWP Holdings to WorleyParsons for R900-million in cash – a move which CEO Marius Heyns said would allow the group to concentrate on its core business and sharpen its focus on special projects.

The deal excludes Basil Read Matomo Projects, TWP Investments and LYT Architecture, formerly known as TPS.P Architects, which would all continue to operate as wholly owned subsidiaries of Basil Read.

Heyns said Basil Read’s three-year ownership of TWP was significantly beneficial but that the offer could not be ignored. “We believe the transaction creates value for our shareholders and fits perfectly into our evolving strategy of increased focus on engineering, procurement and construction [EPC] business.”

Basil Read would pursue its growth into value-added EPC services through its continued ownership of Basil Read Matomo, which would lead the growth strategy of the group’s current focus in the energy and renewable-energy sectors, among others.

“We have submitted bids in a lot of the energy projects and quite a few mining-related projects as well,” Heyns said.

He stated that the three businesses staying behind in the Basil Read group would contribute about 40% of the revenue and the profits that TWP would have contributed.

Heyns also pointed out that Basil Read had a project pipeline of close to R5-billion. With an order book in excess of R1-billion in terms of pipeline projects, Basil Read Matoma was forecast to achieve about R600-million turnover next year.

The agreement with WorleyParsons made provision for TWP executives who were currently seconded to Basil Read Matomo projects to complete projects on arms-length terms.

The agreement also allowed for Basil Read Matomo to provide EPC management services within the scope of its existing activities and consistent with its growth strategy.

The purchase consideration was payable in cash on the implementation date of the proposed transaction, which was subject to the fulfilment of a number of conditions precedent, including approval from the Competition Commission and Basil Read shareholders.

Heyns said the deal was expected to be implemented by the end of February or early March next year.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Zambia's decision to hike royalty rates on open pit mining from 6% to 20% will lead to shaft closures and 12 000 job losses, the chamber of mines said on Friday. Barrick Gold said on Thursday it would suspend operations at its Lumwana Copper Mine after royalty...
GoldBridges, a small Kazakh gold miner led by a member of the well-connected Assaubayev family, on Friday joined the main board of the London Stock Exchange and is hoping to improve the image of Kazakh businesses in the mining sector. The company, which already...
Ferrochrome production at Glencore-Merafe's Lion smelter
The European benchmark price of ferrochrome has been settled 6% lower for the first quarter of next year, the JSE-listed Merafe Resources said on Friday. The price of $1.08/lb for the first quarter of 2015 is seven cents a pound lower than the current $1.15/lb price...
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks