Photo by: Duane Daws
Construction group Basil Read will sell its SprayPave bituminous road binder manufacturing subsidiary to hot and cold asphalt products supplier Much Asphalt for R78.6-million.
The JSE-listed company would use the net proceeds to reduce its debt and fund its capital management initiatives.
Much Asphalt would acquire the SprayPave shares for R9.1-million and the business of wholly-owned subsidiary Armac for R24-million.
Armac owned the immovable property in Johannesburg, Cape Town and Durban from which SprayPave operated, as well as certain plant and equipment leased by SprayPave.
The balance of the purchase consideration was allocated towards sale claims and Basil Read equipment.
“The purchase consideration may decrease, owing to certain adjustments that may be required once actual working capital and net debt balances have been confirmed. It can also decrease if certain commissioning costs and milestone payments, in respect of the plant, have not been made,” Basil Read said in a statement.