Jun 29, 2012
Cisco sale at an 'advanced' stageBack
Construction|Natal|Africa|Cisco|Housing|Murray|Africa|Newcastle Mill|Prospective Buyer|Steel|Steel Mill|Steel Rolling Mill|Western Cape|Henry Laas|Reinforcing
© Reuse this
The identity of the buyer was not disclosed, nor was the precise composition of the assets that would be sold, with M&R also housing a reinforcing bar (rebar) distribution network.
CE Henry Laas said on Friday that the group was unlikely to meet its second internal target for completing the noncore disposal, which had been set for June 30. The JSE-listed group initially set the target for closing out the sale as the end of 2011.
In late 2010, M&R indicated that it was planning to dispose of Cisco as a priority, having earlier initiated a programme to close or dispose of its underperforming assets.
Cisco is an electric arc furnace melt shop and reinforcing steel rolling mill and the curtailment of production from the facility, together with the failure of a furnace at ArcelorMittal South Africa’s Newcastle mill, in KwaZulu-Natal, led to serious regional rebar shortages in 2011.
“Currently, we do have agreement in principle with the prospective buyer,” Laas reported.
He added that he expected to be in a position to confirm the sale before the group reported its year-end results, scheduled for August 29.
“It took longer than what we had anticipated, but it is under way,” Laas said, describing the potential transaction as being “very far advanced”.
The disposal formed part of the group’s three-year recovery and growth plan, with the 2012 financial year having focused primarily on the recovery aspects of that strategy.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
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...
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.
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...