JSE-listed Murray & Roberts (M&R) expects to wrap up the R405-million acquisition of an additional 17% stake in the Bombela Concession Company (BCC) by the end of this month.
In August, M&R secured a memorandum of understanding that will see the construction giant increase its effective shareholding in BCC from the current 33% to 50% through the acquisition of shares from shareholders Bouygues Travaux and Bombardier Transportation UK.
Bouygues and Bombardier agreed to sell 8.5% each to M&R, following the settlement of the development period disputes in December 2016.
The commercial terms of the proposed transaction have been agreed and agreements are in the process of being finalised.
The deal remains subject to BCC lenders’ and regulatory approvals, besides others.
“We expect this low-risk investment in BCC to continue providing strong returns,” M&R said in a business update last week.
BCC holds the 15-year concession for operating and maintaining the Gautrain system until March 2026.