Murray & Roberts business rescue unaffected despite final liquidation of parent company

Engineering and construction group Murray & Roberts Limited (MRL) has confirmed that the Gauteng High Court granted a final liquidation order for its parent company, Murray & Roberts Holdings (MRH), on Monday.

In a statement on Tuesday, MRL emphasised that the liquidation of MRH would not affect its ongoing business rescue process, as the two entities are legally and operationally distinct.

While MRH functioned as the ultimate holding company, MRL operates as a downstream subsidiary with several intermediary entities between them.

The company said the liquidation of MRH does not impact the business rescue proceedings of MRL, which continue firmly on track under the supervision of the duly appointed Business Rescue Practitioners.

MRL entered voluntary business rescue on 22 November 2024, following severe liquidity constraints linked to project delays and rising costs. The process has since focused on restructuring the group’s operations and preserving value for creditors, employees, and other stakeholders.

A cornerstone of the rescue plan is the Differential Transaction, which involves the acquisition of MRL’s mining-related subsidiaries — including Cementation Africa, Cementation Americas, and TNT Americas — by a consortium led by Differential Capital.

The company said significant progress had been made toward finalising the transaction, with definitive agreements and suspensive conditions nearing completion.

Earlier this month, the Competition Commission approved the South African aspects of the deal, clearing one of the key regulatory hurdles.

The company said the approval marks an important milestone in the broader business rescue process, adding that the BRPs remain confident that successful implementation of the plan will secure a sustainable future for the group and its employees.”

The proposed restructuring is expected to safeguard approximately 2 800 jobs, particularly within the Cementation Africa division, which forms a critical part of South Africa’s mining services sector.

MRL’s Business Rescue Practitioners and Differential Capital are expected to provide further updates as the transaction moves toward completion in the coming months.

Differential Capital operates in South Africa and manages investments - retirement funds and hedge funds - on behalf of its clients.

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