JSE-listed Murray & Roberts (M&R) has sold Genrec to black-owned industrial company Southern Palace Group.
Certain assets and liabilities are excluded from the transaction and will remain with the group.
“M&R has, over the past few years, changed its strategic direction, which resulted in a significant change to its portfolio of businesses, and Genrec was the last remaining manufacturing business to be sold,” the company said in a statement on Monday.
M&R has sold its infrastructure and building businesses to Southern Palace and, earlier this year, transferred its listing on the JSE to the General Industrials subsector, from the previous Heavy Construction sector.
“Southern Palace is truly stepping up its investment in the infrastructure industry. This acquisition ensures that we have a strong foothold in the steel fabrication market in South Africa.
“We plan to diversify the current Genrec product offering to become a significant steel provider for infrastructure developments in energy, water, mining, health, education and transport sectors,” Southern Palace CEO Lucas Tseki said.