After 120 years, Murray & Roberts heads towards liquidation

After 120 years, Murray & Roberts Holdings Limited (MRH), a South African engineering and construction stalwart founded in 1902, faces liquidation. The company, which listed on the JSE in 1951 and merged with Roberts Construction in 1967, did not oppose creditor-initiated proceedings in the Gauteng High Court.

This decision follows a prolonged period of financial distress that rendered the holding company insolvent after the sale of its core assets. 

On August 15, the group informed shareholders that a creditor had initiated liquidation proceedings in the Gauteng Division of the High Court of South Africa, seeking a final or provisional winding-up order. 

According to reports, Murray & Roberts stated, "Given the company’s financial position, Murray & Roberts does not intend to oppose the liquidation application." The company plans to continue engaging with its legal advisors and will update shareholders on further material developments.

Murray & Roberts Holdings Limited (MRH) and Murray & Roberts Limited (MRL) are two distinct companies, with MRH being the ultimate JSE-listed holding company of MRL.

A creditor has instituted liquidation proceedings against MRH, and those court processes are underway.

MRL is a separate legal entity in business rescue, under the supervision of its Business Rescue Practitioners (BRPs). The application for the liquidation of MRH is unrelated to and has no impact on the business rescue proceedings of MRL. 

On November 22, 2024, MRL was subsequently placed on business rescue following significant liquidity constraints by the South African-based international engineering and construction group over a prolonged period.

The business rescue practitioners said that creditors had approved MRL’s business rescue plan on April 8, and in terms of this plan, MRL’s main assets, its mining businesses, would be sold to a consortium of investors led by South Africa-based asset management firm Differential Capital.

MRL's business rescue plan is firmly on track. The process continues to safeguard thousands of jobs within MRL’s viable subsidiaries.

"The BRPs overseeing MRL’s business rescue remain confident that the adopted planrepresents the most viable path forward.

"Once implemented, it is expected to safeguard approximately 2800 jobs within the underlying businesses, with particular emphasis onprotecting South African jobs within Cementation Africa."

Once a cornerstone of South Africa’s development, Murray & Roberts was behind iconic projects such as the Carlton Centre, Koeberg nuclear power station, Gautrain, and Cape Town’s Greenpoint stadium. Its international portfolio included Australia’s Gorgon platform and Dubai’s Burj al Arab.

The firm's demise is attributed to a "perfect storm" of liquidity issues, project delays, overreliance on clients like De Beers’ Venetia Mine, the failed Clough expansion in Australia, the impacts of COVID-19, and a lack of bank support, marking a tragic end to its storied legacy.

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