R/€ = 14.22
R/$ = 11.27
Au 1213.11 $/oz
Pt 1281.70 $/oz
Nov 09, 2006
Competition body approves buy out of Barloworld’s steel-tube unitBack
Engineering|Barloworld Robor|Gautrain|RMB Ventures|Stainless Steel|Gautrain|Energy|Hot-rolled Steel Tube|Senior Management|Steel|Steel-tube|Transport|Competition Tribunal|Gautrain|Gautrain|Infrastructure|Mike Coward|Power|Rail
© 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 (150 word limit)
Updated 6 hours ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 6 hours ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 7 hours ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.