en.Wedoany.com Reported - Murray & Roberts Limited (MRL), along with its joint business rescue practitioners, has completed the Differential Capital transaction, advancing the business rescue plan to a new phase. This transaction is a core component of MRL's business rescue plan, aimed at preserving its major global mining services operations, approximately 2,600 jobs, and key engineering capabilities.
The transaction involves a group of investors led by Differential Capital acquiring MRL's primary mining interests, including the Cementation operations in Africa and the Americas, as well as the Terra Nova Technologies (TNT) business. The transaction is valued at ZAR 1.27 billion, with an initial payment of ZAR 1 billion at closing and a deferred portion of ZAR 270 million payable after 12 months. This deal creates a new, financially independent mining services platform covering Africa and the Americas.
MRL entered voluntary business rescue in November 2024 due to long-term financial pressures within the group. Josh Cunliffe, one of the joint business rescue practitioners, stated that the completion of the transaction is a decisive milestone in the business rescue process, reflecting the effectiveness of stakeholder collaboration. The core objectives are to retain viable operations, protect jobs, and maximize creditor value, while ensuring that the specialized mining business continues to contribute to the South African economy.
Mark Salmon, Head of the Differential Capital Special Situations Fund, noted that what attracted the company was not just the investment opportunity, but the preservation of a world-class mining services platform with deep technical expertise and a highly skilled workforce. Businesses such as Cementation and TNT play a critical role in supporting the mining sector, which remains a cornerstone of the South African economy. This transaction creates value not only for investors but also for employees, customers, suppliers, and the broader mining ecosystem, demonstrating how long-term capital can generate both commercial returns and positive economic and social outcomes.
Throughout the process, Cementation was never placed under business rescue at any stage, retaining its core operational capabilities, technical expertise, and workforce. It has been able to continue serving clients and pursuing growth opportunities without interruption, and is currently actively delivering projects across multiple jurisdictions. Following the transaction's completion, Japie du Plessis has been appointed as CEO of the new group, and Sibulele Songca as CFO. Du Plessis stated that the completion of the transaction provides the necessary certainty to focus on the next phase of growth. This is not merely a change in ownership but the beginning of a new chapter, upon which the company will build its business and create long-term value for employees, clients, and the mining industry.
The joint business rescue practitioners expressed gratitude to the professional advisors who supported the success of the transaction. Webber Wentzel and Werksmans Attorneys served as the lead legal advisors for the BRPs and Differential Capital, respectively. Redinc Capital acted as the arranger, debt sponsor, and manager for the Differential consortium, raising approximately ZAR 1.2 billion through four tranches of Johannesburg Stock Exchange-listed preference shares to provide listed market funding for the transaction. Credeq Africa, acting as the underwriting management agent for Lombard Insurance Company, provided a continuing guarantee facility for Cementation Africa throughout the transition period.
The joint business rescue practitioners noted that although the Differential Capital transaction has been concluded, MRL's business rescue process is still ongoing. At the time of the transaction's closing, all secured loan debt and all secured post-commencement financing obligations have been settled.
