JSE-listed Esor has, through its Esor Construction subsidiary, acquired a 100% interest in Tuboseal Services for R15-million, as well as the business assets and operations of Tuboseal for R18.25-million.
Tuboseal Group is a Cape Town-based pipeline rehabilitation company.
Esor on Monday said the transaction expanded its existing product offering and provided vertical integration in the maintenance of infrastructure; offered attractive margins; provided a platform for Esor to grow its geographic footprint with a presence in the Western Cape; and provided an opportunity to participate in the expected growth of infrastructure maintenance contracts.
Esor is required to settle the R3-million balance of the purchase consideration by October 31.
Esor’s share price on the JSE rose 35% on Monday, trading at 50c a share at 15:14, compared with Friday’s close of 37c a share.