CONSTRUCTION group Basil Read is set to sell its stake in Trans African Concessions, the consortium that won the concession to build, maintain and operate the Maputo corridor in 1997.
Basil Read said it would use the R78m from the sale to settle its interest-bearing debt .
Interest bearing borrowings were at about R40m in 2001, and have been at about R87m over the past year.
The group has invested substantially in new plant and equipment in support of new contracts over the past year or so. Capital expenditure was at R73m for the year to December 2002.
The group reported a poor performance for the six months to June this month, with pretax profit dropping 30%. Headline earnings plummeted to 4,55c a share from 10,75c.
Basil Read said its investment in Trans African was regarded as noncore. The group would, therefore, sell the shares to the SA Infrastructure Fund, Old Mutual Life Assurance Company of SA and CDC Group, provided certain conditions were met.
The construction company held 47325275 shares in the Trans Africa consortium.
Several South African companies were eagerly awaiting the completion of an upgrade programme at the Maputo harbour, which could see exporters starting to route their goods through that port. The harbour is more closer to Gauteng that South African ports.
