Murray & Roberts increases stake in Bombela

Murray & Roberts (M&R) has increased its stake in Bombela Concession Company (BCC), operator of the Gautrain, from 33 to 50 percent, in a R405 million transaction.

Ed Jardim (pictured), M&R spokesperson, has said that BCC has thus far delivered a return on investment of around 18 percent per year. Jardim says the investment provides a steady income and mitigates the volatility of M&R's contracting business. The concession period ends in 2026.

Once the transaction concludes, the shareholding in BCC will be: M&R 50 percent, empowerment group SPG 38 percent and Calshelf (J&J Group) 12 percent.