M&R to sell construction units to Southern Palace-led consortium for R314m

Engineering and construction group Murray & Roberts (M&R) announced on Tuesday that it had entered into a R314-million agreement to sell eight of its infrastructure and building divisions to a black-empowered entity known as Firefly Investments, led by the Southern Palace Group. The transaction is subject to several conditions, including a written undertaking from the Construction Industry Development Board indicating that it will not pursue civil claims arising from a 2013 collusion settlement. Competition authority and shareholder approvals also remain outstanding, but the participants are optimistic that the deal will be consummated during the first few months of 2017.