JSE-listed Murray & Roberts (M&R) has completed the disposal of its entire interest in the Bombela Concession Company (BCC) to a wholly owned subsidiary of Intertoll International.
At a general meeting of M&R shareholders held on February 20, shareholders overwhelmingly voted in favour of the transaction, the group says.
All conditions precedent in respect of the transaction have now been fulfilled and/or waived and the transaction has reached financial close.
As stated in the transaction circular published by M&R, the proceeds from the transaction of R1.26-billion will be used to repay debt, following which the group’s total debt will reduce to R1.39-billion.
The group says it continues to focus on cash generation through operational performance, cost reduction and managing working capital prudently.
It adds that it remains optimistic about the prospects for its multinational Mining platform and Africa-focused Power, Industrial and Water platform.
BCC was, in 2006, appointed by the Gauteng provincial government to design, build, operate, maintain and partially finance the Gautrain rapid rail project.