By Thabang Mokopanele
Road construction company Raubex on Monday announced its intention to acquire road construction businesses Thaba Bosiu Construction and Zamori Construction for R100m.
Both companies specialise in road construction and have an established presence countrywide. The acquired operations would be integrated in the Raubex construction division.
Raubex commercial and financial director Francois Diedrechsen said the acquisition was another significant capacity building move for the group, which would reinforce its road and civil infrastructure capabilities.
While Raubex Construction operates in all nine provinces and throughout the Southern African Development Community region, it is looking to increase its presence nationally.
The proposed acquisitions are subject to competition authority conditions which are expected to be fulfilled by the end of April.
Thaba Bosiu’s after-tax profit for the six months to August was R6,35m, while Zamori’s after-tax profit for the year to June was R10,87m.
The proposed acquisitions add up to less than 5% of Raubex’s market capitalisation.
“One of the most value-enhancing parts of this deal is that top management will remain on board. This will allow Raubex to use its expertise to the fullest extent, also ensuring the business continues to perform optimally in this buoyant environment,” Diedrechsen said.
“We have been looking to further reinforce our heavy construction presence in SA and this deal will do just that. Both companies have a great reputation in this area and will add to the overall positioning of the Raubex Group.”
Willie van der Merwe, director of Thaba Bosiu and Zamori, said the deal was mutually beneficial. “We are confident that our combined resources and expertise will ensure greater access to projects.”
Raubex’s order book has increased sharply from R1,6bn in the first half to August to R2,3bn.
Revenue soared 67,4% to R963m from R575,6m six months ago, due to organic growth and acquisitions.
Publisher: I-Net Bridge
Source: I-Net Bridge
