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RBX - Raubex - Acquisition
RAUBEX GROUP LIMITED
(Previously Lexpub 49 Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2006/023666/06)
Share Code: RBX
SIN: ZAE000093183
("Raubex" or "the Company")
ACQUISITION OF GAUTENG BASED BONN PLANT HIRE (PTY) LTD AND THE BUSINESS OF
AKASIA ROAD SURFACING (PTY) LTD
Raubex, the JSE-listed road construction and rehabilitation company, today
announced that it acquired Bonn Plant Hire (Pty) Ltd and the business of Akasia
Road Surfacing (Pty) Ltd, subject to certain conditions precedent ("the Proposed
Acquisition").
The Proposed Acquisition, which will fit within the Group`s Roadmac division,
specialise in road construction, road surfacing and asphalt manufacturing and
are set to significantly reinforce Raubex`s capacity in Gauteng; a key growth
area for the Group over the medium-term.
The Proposed Acquisition, priced at R117 million, is less than five percent of
Raubex`s market capitalisation and will be settled in cash. Raubex will fund the
full purchase consideration from cash resources made available following the
recent issue of shares for cash, announced on SENS on 7 February 2008. The
Proposed Acquisition is anticipated to be earnings enhancing to Raubex.
Related conditions precedent are anticipated to be fulfilled by the end of April
2008.
Commenting on the acquisition, Francois Diedrechsen, Raubex`s Commercial and
Financial Director, said: "This is yet another strategic acquisition for Raubex
as we gear up to meet the demand created by the recently announced Gauteng road
upgrade programme."
ENQUIRIES
Raubex 012 665 3226
Francois Diedrechsen
College Hill 011 447 3030
Frederic Cornet 083 307 8286
Jacques de Bie 082 691 5384
ABOUT US
Raubex
Raubex is a black-empowered construction company that operates across all nine
South African provinces and throughout southern Africa. The Company listed on
the JSE Limited in March 2007.
Koos Raubenheimer founded the business in Bloemfontein in 1974 and progressively
developed the company into a leader in road construction and rehabilitation and
associated infrastructure development, including bridges, culvert drainage,
sewerage and pavements. The company is also a major supplier of aggregates to
the construction industry. Today the Company employs over 3,000 people across
southern Africa.
Raubex`s main line of business is road building and road rehabilitation. Whilst
the vast majority of contracts emanate from government related bodies including
local municipalities and the South African National Roads Agency Limited
(SANRAL), Raubex also services the private sector.
Over the years, the Company spawned a number of subsidiaries but, due to
changing requirements and shifts within the market, a restructuring programme
recently took place seeing the Company consolidate into three main divisions -
road and civil infrastructure construction, road rehabilitation and aggregates.
Roadmac
Roadmac is a specialist in the manufacturing and laying of asphalt, chip and
spray, surface dressing, enrichments and slurry seals. The division has offices
in all major South African cities and has worked cross-border in Namibia,
Lesotho, Mozambique and Zambia.
Roadmac owns an African patent for an ultra-thin asphalt surfacing called ULM
and is the leading applicator in this market.
Due to the highly specialised nature of its equipment, the division maintains
its own mechanical division. Roadmac`s fleet of equipment is up to date with the
latest technology available. Fully equipped in-house maintenance and servicing
facilities ensures that all equipment is kept in optimal working conditions.
Roadmac is the largest contributor to Group revenue. For the six months ended 31
August 2007, the division achieved revenue of R566 million and operating profit
of R114 million.
Investment bank and sponsor to Legal adviser to Independent
Raubex Raubex reporting
accountants to
Raubex
(Investec Bank Limited logo) (Hofmeyr, Herbstein & (Malan du Preez
Gihwala logo) logo)
Legal adviser to Bonn Plant Hire Accountants to Bonn Financial
and Akasia Road Surfacing Plant Hire and Akasia communications
Road Surfacing adviser to Raubex
(Grosshopf Attorneys logo) (Equifin Incorporated (College Hill
logo) logo)
Date: 22/02/2008 12:25:26 Supplied by www.sharenet.co.za
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