JOHANNESBURG (miningweeekly.com) - Construction company Basil Read and engineering and contracting firm TWP Holdings have reached an agreement under which Basil Read would acquire the entire issued share capital of TWP.

Basil Read would pay out more than 37,3-million new ordinary shares, as well as more than R143,6-million in cash, in the ratio of 31,16 new Basil Read shares and R119,96 for every 100 TWP shares. TWP shareholders holding less than 100 TWP shares or not holding whole number multiples of 100, would receive the scheme payment on a pro rata basis.

It was expected that the scheme payment would be settled on the operative date of the scheme expected to be December 21.                            

The scheme payment was based on the assumption that TWP’s black economic empowerment shareholder Vunani’s option to subscribe for new TWP shares, did not arise.

The transaction was viewed as complementary, owing to the fact that the businesses currently operated in distinct milieus. The enlarged group would reportedly be able to tackle a wider range of projects across the built environment, including public–private partnerships, and resources sectors.

The combined group would extend TWP’s construction-skills repertoire, while Basil 
Read would have access to additional design and project management expertise.

“TWP’s significant exposure to the African and Australasian markets can be leveraged and costs can be reduced across the enlarged group by exploiting areas of synergy,” the companies stated.

The size of the new group would also allow it to compete for larger contracts, pursue international acquisitions and compete globally.

Cost savings would also be possible. owing to the fact that there would be one listing and one board, and a sharing of executive management and skills.

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