| |
IDC CONCLUDES PARTNERSHIP WITH BASIL READ
Basil Read Holdings Limited has issued a cash share placement by subscription with the Industrial Development Corporation (IDC) of South Africa.
Further to the Basil Read SENS announcement, the IDC has subscribed for new share capital to the extent of R179,6 million in Basil Read Holdings Limited, after completing a two month evaluation process. Basil Read issued 9,1 million new ordinary shares at a share price of R19,76 per share. Therefore the IDC is effectively an 11% shareholder in the Basil Read group.
Based on the June 2008 figures, shareholder funds of Basil Read are enhanced through the transaction from R421,5 million to over R601 million, increasing shareholder funds by 42,6%.
The enlargement of the shareholder funds base places Basil Read group in a position to continue with its longer-term growth objectives. “The increased capital will place Basil Read in a firm position to continue with its future growth strategies,” says Basil Read CEO Marius Heyns.
“The direct investment by the IDC in Basil Read has been made in line with its objective of taking stakes in developing companies,” says Sicelo Sikakane, Head of 2010! and Construction Strategic Business Unit at the IDC. “In this instance IDC has identified Basil Read as a deserving example of a group that is directly engaged in infrastructure and construction sectors, two segments that have been added to IDC’s funding and investment programmes since 2005.”
BASIL READ TAKES TOP HONOURS
Basil Read was named the number one company in the 2008 Business Times Top 100 Companies survey. Marius Heyns told the Sunday Times that winning this award means a lot to the employees and shareholders of the company, especially given Basil Read’s turbulent history and difficult relationship with the media in the past. The runners-up behind Basil Read were Digicore Holdings in second, followed by Highveld Steel and Vanadium in third place.
Basil Read was near bankruptcy a mere four years ago and has come out in 2008 as the company that has earned the highest value for its shareholders – this is indeed an incredible achievement. Basil Read has more than doubled its performance, starting at a share price of R1,40 five years ago and ending the period at R25,20, giving shareholders an annual compound growth of 96%.
Marius Heyns believes in delegating but still takes a very hands-on approach to heading up the company which has been fundamental to the landslide successes that we are seeing today. “Communication is vital – the Basil Read management spend a lot of time together. I also make a point of walking through the head office at least once a day as well as regularly visiting our sites all over the country, as well as Namibia and Botswana”, says Heyns.
BASIL READ ACQUIRES ROADCRETE AFRICA
Basil Read (Pty) Limited on Monday (26 May 2008) announced the acquisition of all of the shares in Roadcrete Africa (Pty) Limited for a consideration of R157,8 million. Roadcrete Africa’s core business is the provision of road building and civil engineering services. The synergies with Basil Read’s roads and civils divisions will enhance the profitability and competitiveness of these divisions.
Marius Heyns, Chief Executive Officer of Basil Read commented that, “The Roadcrete deal not only enhances the earnings of our roads and civils divisions, it is also a strategic investment in road building and civil engineering resources”.
Roadcrete Africa’s current order book amounts to R850 million and the vendor is a 20% joint venture partner with Basil Read on the recently awarded Gauteng Freeway Improvement contract, which amounts to R1,7 billion. All other Roadcrete Africa’s client contracts will carry on in the normal course of business. |
|
|
|
