R/€ = 14.30
R/$ = 10.38
Au 1254.10 $/oz
Pt 1387.50 $/oz
Nov 09, 2006
Competition body approves buy out of Barloworld’s steel-tube unitBack
Barloworld Robor|Gautrain|RMB Ventures|Gautrain|Hot-rolled Steel Tube|Senior Management|Steel|Steel-tube|Transport|Competition Tribunal|Gautrain|Gautrain|Mike Coward
© Reuse this The Competition Tribunal on Thursday unconditionally approved the management buyout (MBO) of Barloworld’s steel-tube business.
The MBO will see the senior management of Barloworld Robor and RMB Ventures acquiring joint control of Robor.
It is understood that black economic-empowerment partners, including two external partners and two staff trusts, would have a 28% shareholding of the company. Senior management will have the rest of the shareholding.
In a previoud interview with Engineering News, Barloworld Robor CEO Mike Coward said that the independent Robor would benefit from being released from cost structures associated with being part of Barloworld, including onerous corporate governance costs.
There was also a firm belief that Robor could be run at a lower cost as an owner-managed business.
The company had also said that it was also on the verge of solving the problems of the stainless steel tube business unit, which was being relocated to Isando from Chamdor, the Chamdor property having already been sold. This would mean that Robor would have four of its businesses on a single site, made up of hot-rolled steel tube, open sections, cold-rolled precision and stainless-steel business units.
“This would provide both cost and management benefits,” Coward, who has led the company for the past 15 years, pointed out.
He was confident that Robor stood to benefit significantly from the proposed government expenditure of R409-billion on public energy and transport infrastructure, which would be very positive for the business.
The company stood to benefit from power-station heat-exchanger demand, in particular, along with demand for structural-steel sections for rail coaches and wagons and the many handrailings and signboard poles and structures that will be in demand for the Gautrain railway stations.
The entire 11-member executive team, bar one who was retiring, was committed to the MBO and the 60-person senior management team had pledged support.
Edited by: Nelendhre Moodley© Reuse this Comment Guidelines
Updated 2 minutes ago Renewables developer and independent power producer BioTherm Energy’s Aries and Konkoonsies solar photovoltaic (PV) energy facilities, in the Northern Cape, have reached commercial operation, delivering a combined 20 MW of electricity to the national grid. The...
Updated 15 minutes ago There is a “realistic opportunity” to double Opel sales in South Africa in the short term, says General Motors South Africa (GMSA) operations VP Ian Nicholls. GMSA will sell around 2 915 Opels in South Africa in 2013.
Updated 1 hour 23 minutes ago The South African National Roads Agency Limited (Sanral) were fabricating their e-tag sales to more than double what they were, the Opposition to Urban Tolling Alliance (Outa) said on Wednesday. "Based on a statistically sound sample size, Outa's research shows that...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 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.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.