Jun 29, 2012
Cisco sale at an 'advanced' stageBack
Construction|Natal|Africa|Cisco|Housing|Murray|Africa|Newcastle Mill|Construction|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)
Updated 6 hours ago A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
Updated 6 hours ago The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Updated 6 hours ago The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...