Borbet in South Africa
Murray & Roberts has sold 50% of the business of AWI South Africa to Borbet GmbH of Germany, with effect from 1 July 2003 and subject to approval by the competition authorities. The company will be renamed Borbet South Africa and Murray & Roberts will continue to play a key role in partnering Borbet management through their introduction into the South African manufacturing environment. The transaction is at net asset value and will be settled partially in cash on transaction, with the remainder interest bearing and payable over three years.
A profit of R47,4 million realised from the sale of the AWI property in the UK (aluminium wheel plant Rochester, 30 June 2002) has been allocated against the increased risks associated with headleases and other discontinued property assets. A further review of the property headlease provision against projected losses through to 2015 has been completed.