Breaking News

Total CEO De Margerie Dies in Moscow Plane Crash, Interfax Says
Tweet TWEET

Murray & Roberts Clough Division Sells Its Stake in Forge

Murray & Roberts Holdings Ltd. (MUR), South Africa’s second-largest construction company, said its Clough Ltd. (CLO) unit in Australia sold its 36 percent stake in Forge Group Ltd. (FGE) services provider for A$187 million ($195.8 million).

Clough will use proceeds from the disposal of about 30.9 million shares in Forge to “deliver shareholder value” through acquisitions or “capital management initiatives,” Johannesburg-based Murray & Roberts said in a statement today. The sale was arranged under a block trade agreement with Macquarie Capital (Australia) Ltd.

Murray & Roberts returned to profit in the six months through December, with net income of 262 million rand ($28 million) compared with a loss of 528 million rand a year earlier. Perth-based Clough, an energy, chemical and mining engineering business that’s 62 percent-owned by the South African company, posted a fourfold jump in operating profit in the period, excluding figures from Forge.

Murray & Roberts rose as much as 3.5 percent to 24.04 rand and was trading up 1.6 percent at 4:19 p.m. in Johannesburg. That pared the stock’s decline this year to 4.7 percent, compared with a 0.3 percent gain in the seven-member FTSE/JSE Africa Construction and Building Materials Index. Clough fell 4 percent to A$1.31 and Forge declined 2.9 percent to A$6.10 at the close in Sydney.

To contact the reporter on this story: Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.