JSE-listed construction and engineering company Basil Read said on Wednesday that it would buy a majority 52% interest in Australian civil engineering company Central Systems for A$15-million (about R112-million).
The company said that the transaction was in line with its stated intention of growing into markets outside South Africa.
The acquisition would be funded through Basil Read’s banking facilities and is expected to be concluded by November 1. The vendors included the Purple Trust, the GRCS Trust, Seafire Holdings and Matthew Reid Project Management.
Central Systems is a profitable business and is anticipated to be earnings accretive for Basil Read.
Basil Read advised shareholders to exercise caution when dealing with its securities until a further announcement containing the financial effects of the acquisition were released.
South African construction companies are increasingly looking to expand outside the country, as the local market remained flat. Earlier this week, Wilson Bayly Holmes Ovcon said that it would target growth in the Australian market, while Aveng reported that its Australasian orders contributed nearly 51% of its overall two-year order book.