Bombardier and Bouygues to sell Gautrain concession stakes
SOUTH AFRICA: Engineering and construction services company Murray & Roberts has signed a memorandum of understanding to acquire the 8·5% stakes in Gautrain concessionaire Bombela Concession Co held by Bouygues Travaux Publics and Bombardier Transportation.
Commercial terms for the deal worth a total of R405m have been agreed and agreements are in the process of being finalised, MRL said on August 22.
MRL originally held a 25% stake in the concession to design, partly finance, build, operate and maintain the Gautrain network, which it increased to 33% in 2011. Bouygues and Bombardier Transportation have now decided to divest their holdings.
MRL said its investment in BCC provides ‘strong returns in the short to medium term’, explaining that the acquisition formed part of a broader capital allocation strategy.
The other Bombela shareholders are black economic empowerment company Strategic Partners Group, and financial services, healthcare, IT and industrial investor J&J Group.
Bombardier Transportation told Railway Gazette it was ‘constantly optimising’ its investment portfolio, and remained ‘committed’ to the South African rail market.