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Murray & Roberts Seeks To Acquire The Cementation Mining Contracting Business
From Skanska Of Sweden
MURRAY & ROBERTS HOLDINGS LIMITED
("Murray & Roberts")
(Incorporated in the Republic of South Africa)
Registration number 1948/029826/06
JSE Share Code: MUR
ISIN Code: ZAE000008983
MURRAY & ROBERTS SEEKS TO ACQUIRE THE CEMENTATION MINING CONTRACTING BUSINESS
FROM SKANSKA OF SWEDEN
South African industrial and engineering contractor Murray & Roberts announced
today that a letter of intent has been signed with Skanska AB of Sweden to
pursue exclusive negotiations for the acquisition of Skanska"s controlling
interests in its worldwide Cementation mining contracting business operating
from South Africa, Canada and Australia.
These businesses within Skanska UK were part of Kvaerner Construction (UK),
which Skanska acquired in 2000 and include those worldwide mine design, mine
development, mine engineering and mine contracting services and contract mining
operations which are considered to be outside the core business of Skanska. The
total net revenue in the year to December 2002 of the businesses to be acquired
was ZAR 1,5 billion (CAD 225 million; AUD 240 million), with an operating profit
of ZAR 44 million (CAD 6,6 million; AUD 7,2 million).
Murray & Roberts group chief executive Brian Bruce says, "Clients in the global
mining resources sector are looking to their contractors for higher levels of
services integration in the development and expansion of their underground
assets and activities. This includes enhanced feasibilities, design-build
integration and longer-term mining operations." He adds that ongoing
consolidation in the resources sector has challenged Murray & Roberts to expand
its capacity to serve its clients across all global markets.
"The change in risk allocation associated with these trends demands that we
pursue a strategy of greater critical mass and a more effective global
presence," says Bruce. He adds, "The Cementation mining business has been at
the forefront of underground mining development for the past 80 years and will
complement our existing capability serving the global resources sector." These
include underground mine development, shaft sinking and raise-boring, design and
engineering of both underground works and minerals processing plants, civil and
building construction, mechanical, electrical and instrumentation installations
and the supply of specialist products such as mine support systems.
Following completion of normal due diligence, the intention is for a sale and
purchase agreement to be signed in January 2004, with such agreement being
subject to regulatory approvals. Financial closing of the transaction is
anticipated during the first quarter of 2004.
Murray & Roberts has held a leading but focused position in the global mining
contracting market for many years, particularly in the specialist field of large
diameter mechanical boring of vertical shafts. This acquisition of the
Cementation mining operations will add a new dimension to Murray & Roberts,
making it one of the world"s leading underground mining services companies.
For further information please contact
The Office of the Group Chief Executive
Murray & Roberts Holdings Limited
Attention Ms Gwendolene Lilleike
Telephone: +27 11 456 6282
Facsimile: +27 11 455 3524
e-mail: gwenl@murrob.com
Johannesburg
19 November 2003
Sponsor to Murray & Roberts
Merrill Lynch South Africa (Pty) Limited
Corporate advisors to Murray & Roberts
Bridge Capital Advisors (Pty) Ltd
Legal advisors to Murray & Roberts
Michael Krawitz & Co. Attorneys
Date: 19/11/2003 09:02:47 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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