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Murray & Roberts (M&R) has completed the R1.27bn sale of its core mining services businesses to an investor consortium led by Differential Capital, clearing the biggest hurdle in the engineering group’s business rescue process while preserving one of South Africa’s largest specialist mining contractors.The transaction, which forms the cornerstone of Murray & Roberts Ltd’s business rescue plan, transfers ownership of the group’s cementation businesses in Africa and the Americas, as well as Terra Nova Technologies (TNT), into a standalone mining services platform backed by new capital.The deal secures about 2,600 jobs and enables the rescue practitioners to repay all secured lenders and post-commencement financiers. However, unsecured creditors are unlikely to receive any distribution until the deferred portion of the purchase price is received, the business rescue practitioners said in a statement on Monday. Of the sale price, R1bn was paid on closing, with the balance due in a year.M&R entered voluntary business rescue in November 2024 after prolonged financial strain culminated in mounting debt and liquidity pressures.Joint business rescue practitioner Josh Cunliffe described the transaction as “a defining milestone” in the rescue process, saying the focus had been on “preserving viable businesses, protecting jobs and maximising value for creditors” while ensuring the mining businesses remained sustainable.The sale comes as investment activity in the global mining sector strengthens, creating new opportunities for specialist mining contractors.Differential Capital said the acquisition was driven by the long-term value of the businesses rather than the distressed nature of the assets.“What attracted us was not simply the investment opportunity but the opportunity to preserve a world-class mining services platform with deep technical expertise and a highly skilled workforce,” said Mark Salmon, head of the special situations fund at Differential Capital.The cementation business was never placed into business rescue and continued operating throughout the restructuring. The company is executing a five-year underground mine development contract at Tharisa Minerals, projects at Mopani Copper Mines in Zambia and several contracts across the Americas.Japie du Plessis has been appointed CEO of the new group, with Sibulele Songca taking over as CFO.Du Plessis said the change in ownership gave the business certainty to pursue expansion. “This is much more than a change in ownership; it is the start of a new chapter for us. We are now focused on building on those foundations, growing the business and creating long-term value.”Although the transaction has closed, the business rescue process remains under way. The turnaround experts said they will continue administering the estate while awaiting the deferred payment before determining any recovery for unsecured creditors.The completion of the transaction comes six months after M&R Holdings, the group’s former listed parent company, delisted from the JSE following a high court winding-up order. The mining businesses, however, remained under M&R Ltd, which has been in business rescue since November 2024, allowing the sale to proceed as part of its rescue plan.
