Photo by: Creamer Media's Donna Slater
Multinational engineering and construction group Murray & Roberts (M&R) says it has made meaningful progress in reducing its debt with its consortium of South African banks.
Following on from the sale, in April, of its 50% shareholding in the Bombela Concession Company, which resulted in the halving of its debt to about R1-billion, the company has further reduced its debt to R770-million as a result of an agreement of new commercial terms on one of M&R's largest mining projects in South Africa and the sale of a non-strategic investment in Aarden Solar.
Further, subsidiary company Cementation Canada's recently renewed banking facility agreement with a Canadian bank will enable the subsidiary to pay C$40-million, or about R550-million, in dividends to M&R over the next six months to June 2024.
This will enable the group to further reduce its South African debt to about R350-million by June 30, 2024.
M&R also plans to refinance the remaining South African debt by June 2024 at the latest.
In addition, the group has made progress in reducing its overhead costs and says it will continue to focus on operational efficiencies and liquidity management.
M&R's share price on the JSE rose by nearly 14% on December 8 after the group's announcement.