Helmig family pursues mining
GERMANY’S Helmig family has been acquiring shares in South African engineering contractor Murray & Roberts (M&R) as it explores combining that business with its own mining industry service provider, JS Redpath Holding, according to people familiar with the matter.
The Helmig family, which controls the investment company Aton, was working with a financial adviser on a potential deal between Redpath and M&R, said the people, who asked not to be identified because the plans were confidential.
M&R’s cementation unit is the world’s largest underground mining contractor and Redpath is the second biggest.
M&R shares jumped on Friday after Macquarie Group approached investors offering a premium for their stock, a person familiar with the matter said previously. The South African company said at the time that it did not know who bought the stock. About 96 million shares traded last Thursday, equivalent to about 22 percent of its ordinary share capital. According to JSE rules, the buyer has to notify the company within three days of paying for the trade, meaning the investment could be announced this week.
Shares of M&R were down by just 0.07 percent to close at R15 on the JSE yesterday, giving it a market value of about R6.7 billion.
Representatives for Aton and Redpath could not be reached for comment. A spokesperson for M&R said the company had not yet received notification from the buyer of the shares and would release details as soon as possible.
“That the buyer has bought this on the market without notifying the company is an unusual move,” Ed Jardim, a spokesperson for the South African company said about the share purchases, declining to comment on potential interest from Aton. M&R went through a transformation last year when it sold its building and infrastructure units to focus on international businesses specialising in underground mining, oil and gas, and power and water projects.
Aton owns businesses including Redpath, which provides services and products and machinery for mining and shaft sinking. – Bloomberg