Historic South African company shutting down after 120 years
South African engineering and construction firm, Murray & Roberts Holdings says it will not oppose liquidation proceedings initiated by a creditor, seeking final winding up of the business.
The group advised shareholders on Friday (15 August) that a creditor of Murray & Roberts Holdings instituted liquidation proceedings out of the Gauteng Division of the High Court of South Africa.
The creditor is seeking an order for the final, alternatively provisional, winding up of the company. It said it would not oppose the order.
“Given the company’s financial position, Murray & Roberts (Holdings) does not intend to oppose the liquidation application,” it said.
“The company will continue to engage with its legal advisors and will update shareholders on further material developments in this regard.”
Murray & Roberts has a history dating back as far as 1902, when it operated as a house builder in the Cape Colony, operating as Murray & Stewart.
It was listed on the JSE in 1951 and became Murray & Roberts after merging with Roberts Construction in 1967.
Murray & Roberts Holdings announced in April that it would be left commercially insolvent due to ongoing business rescue proceedings at Murray & Roberts Ltd (MRL).
MRL is a separate entity and the Holding group’s primary operating company. It entered into business rescue in November 2024 after what it called a “perfect storm” of setbacks.
The business rescue of MRL is ongoing and will not be affected by the liquidation proceedings of Murray & Roberts Holdings.
In an update on the business rescue proceedings in April, the group said that the business rescue plan was approved by creditors.
However, through the plan, various assets would be sold off to a consortium to pay creditors a fraction of what was owed to them, and Murray & Roberts Holdings would not get anything.
At the time, the group said the implementation of the plan would result in the Murray & Roberts Holdings not having any operating companies and thus no prospect to generate cash through operations, or to recapitalise.
The liabilities of the company exceed its assets, resulting in the company being commercially insolvent.
It said that at the time it would pursue a voluntary winding down of the business, but this was unsuccessful.
“The requisite quorum of shareholders to consider the proposed creditors’ voluntary winding-up of the company was not achieved,” it said.
This winding up is now being pursued through the courts by a creditor, and will not be opposed by the company.
Publishing its interim results for the six months ended 31 December 2024, the group showed a loss before interest and tax of R646 million, up significantly from the loss of just R2 million in the year ended June 2024.
This loss was attributed to guarantees from MRL projects being called by clients to fund project completion.
As the holding company provided surety to the guarantee providers, it reflected the associated loss in the current period.
The group’s results were presented with MRL’s finances listed as discontinued operations, as it is in business rescue. MRL saw revenue of R4.6 billion and a loss before interest and tax of R960 million.
The group reported an attributable loss of R1.4 billion, with a basic loss per share of 167 cents for continuing operations, and a loss per share of 414 cents when including discontinued operation.
Murray & Roberts Limited Business Rescue continues
Following the announcement of the liquidation proceedings for Murray & Roberts Holdings, MRL stressed that it would have no impact on the business rescue proceedings of MRL.
Importantly, it does not affect the Differential Transaction, which includes the acquisition of MRL’s subsidiary Mining Interests, including the Cementation businesses in both Africa and the Americas, by a group of investors led by Differential Capital.
“The business rescue process of MRL remains on course, and the BRPs are satisfied with the progress to date,” the group saod.
The business rescue practitioners said that the MRH liquidation process has no bearing on the operations of MRL’s subsidiary Mining Interests, including the Cementation businesses.
These businesses continue to operate in the normal course.
“The BRPs overseeing MRL’s business rescue remain confident that the adopted plan represents the most viable path forward.”
“Once implemented, it is expected to safeguard approximately 2,800 jobs within the underlying businesses, with particular emphasis on protecting South African jobs within Cementation Africa.”
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