South African based construction, engineering and mining contractor, Murray & Roberts will increase its ownership of the Gautrain from 33% to 50%‚ in a deal valued at R405-million.
Murray & Roberts owns the Gautrain together with Bombela Concession Company‚ French construction group Bouygues Travaux‚ Canadian train and aircraft maker Bombardier Transportation‚ and a local empowerment group, Loliwe Rail Contractors.
In a statement on Tuesday‚ Murray & Roberts said Bouygues and Bombardier agreed to divest from the Gautrain by each selling their 8.5% stake of Bombela to Murray & Roberts.
The announcement came a day before Murray & Roberts was scheduled to release its results for the year to end-June.
Murray & Roberts, Bouygues, Bombardier Transportation U.K. and the Gauteng provincial government have been embroiled in a legal dispute over costs and contracts, which was settled last year.
“Subsequent to the settlement of the development period disputes in December 2016, Bouygues and Bombardier have decided to divest from Bombela Concession Company,” said Murray & Roberts in a statement.
“This acquisition is being undertaken as part of Murray & Roberts’ broader capital allocation strategy, as the investment in Bombela Concession Company provides strong returns in the short to medium term.”
The Gautrain links Johannesburg, Pretoria and O.R Tambo International Airport.
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