Group Five reviews enquiries around voluntary rebuild programme
JSE-listed Group Five, led by CEO Themba Mosai, on Monday said it had received a number of enquiries and correspondence regarding equity-based transactions at both the group and subsidiary company level, which form part of the voluntary rebuild programme (VRP).
Group Five, along with five other South African construction companies, in October last year, signed the VRP agreement with government, committing to either sell at least 40% equity to black South Africans or to implement initiatives to mentor up to three emerging black-owned enterprises.
Group Five has chosen to enter into a black economic empowerment transaction.
The company on Monday said the enquiries were now being reviewed by the board, the mergers and acquisitions subcommittee and independent advisers, who will then determine the next steps based on the best interests of the company and shareholders.
Group Five earlier stated that it would pursue the option of an equity transaction in honouring its obligations in terms of the VRP and to support the company’s transformation.
“A key criterion used in assessing any expression of interest received by the group is whether the proposal has the ability to enhance shareholder value, either by complementing our stated strategy of being a portfolio of countercyclical businesses or by realising value to shareholders which could include a strategy which involves unbundling certain businesses,” the company said in a statement.
Group Five is not currently in possession of a bona fide offer, of a binding or nonbinding nature, for any assets of the group, it added.