Murray & Roberts (M&R) Ltd, the struggling engineering and construction firm in business rescue, has secured a further R80m in funding, which is expected to keep the rescue process on track and protect thousands of jobs in its mining services units.
The latest injection of post-commencement finance, confirmed by the group’s turnaround experts on Wednesday, comes from the same investor group led by Differential Capital. The consortium is also behind a proposed acquisition of M&R’s mining-related subsidiaries, including Cementation Africa and Cementation Americas.
If successful, the transaction is expected to preserve about 2,800 jobs across its subsidiaries, with a key focus on retaining jobs in SA’s Cementation Africa operations.
Post-commencement finance has enabled the business rescue practitioners (BRPs) “to manage unavoidable retrenchments within M&R Ltd itself and to honour statutory severance obligations to affected employees in full”, the BRPs said.
According to the group, the additional R80m will strengthen its push to complete the transaction, unlocking value for creditors and better outcomes for all parties involved.
Companies such as M&R and Aveng have fallen far from their peak, while Basil Read was delisted from the JSE in July last year. Meanwhile, Wilson Bayley Holmes-Ovcon (WBHO) and Raubex have managed to thrive, holding onto solid order books despite the challenging market.
The update from the M&R practitioners comes amid confusion after a liquidation application brought against the JSE-listed entity. The BRPs clarified that M&R Holdings and M&R Ltd are distinct legal entities and that the liquidation of the former has no bearing on M&R Ltd’s business rescue.
M&R Ltd sits several layers below M&R Holdings in the corporate structure and houses the operational businesses being offloaded, the experts said.
“The BRPs remain adamant that the adopted business rescue plan offers the most viable path forward for stakeholders, one that not only protects jobs but also preserves scarce technical skills across SA’s mining and engineering value chains.”
M&R Ltd entered business rescue due to severe liquidity constraints and operational challenges. The immediate trigger was a significant contract loss at the Venetia Mine, where Anglo American reduced its scope with Cementation Africa.
The construction sector itself is facing tough headwinds. A recent Nedbank report revealed that the value of new capital projects dropped dramatically to an annualised R316.2bn, down nearly R592.2bn from 2024.
“No new projects were announced by the government or public corporations after a surge in investment plans last year, when the public sector accounted for 83% of project listings,” the report noted.
Many of those projects remain in early implementation stages, while the private sector now accounts for all new announced projects, driven by a shift towards renewable energy and energy security, alongside improved macroeconomic conditions easing financial pressures, according to the report.
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