Murray & Roberts Set To Sell Its Interests In Clough Limited To Webuild
Murray & Roberts Set To Sell Its Interests In Clough Limited To Webuild. Murray & Roberts has entered into a sale and purchase agreement with Webuild S.p.A in terms of which Murray & Roberts intends to dispose of 100% of its interest in Clough to Webuild, subject to the fulfilment and or waiver of certain conditions precedent.
The Group has been reviewing a number of strategic options to address Clough’s working capital needs, which have become increasingly urgent. Having reviewed all available alternatives and based on the above background, the board of directors of Murray & Roberts concluded that a transaction with Webuild was the preferred course of action.
Webuild is a multinational Italian industrial group specialising in construction and civil engineeringand is headquartered in Milan. Webuild has a history of working with Clough on major projects, including its joint venture with Clough on Snowy 2.0, a hydropower project in Eastern Australia and its participation with Clough (and other members) in Regionerate Rail, a consortium appointed as preferred bidder for the development of the Gowrie to Kagaru section of Inland Rail, as detailed in the announcement by Murray & Roberts of 22 March 2022.
In terms of the SPA, the financial benefit of the Proposed Transaction for Murray & Roberts is A$350 million (equivalent to approximately R4 billion), achieved through the cancellation of an outstanding intercompany loan account between Murray & Roberts Pty Ltd, the Group’s Australian holding company, and Clough, and a cash payment of A$500,000 to Murray & Robertsby Webuild. The intercompany loan in favour of Clough originated through the buy-out of theminority shareholders in Clough by Murray & Roberts in 2013.
