If approved by shareholders it is anticipated that the transaction would be completed in late October 2005. It is expected that at that time one additional representative of Murray & Roberts, Roger Rees, will join Clough’s Board of Directors.
The transaction has been approved by both companies’ boards. The main remaining steps before full approval are endorsement by Clough shareholders, confirmation of no objection by the Australian Foreign Investment Review Board and approval by the South African Reserve Bank.
Clough CEO and managing director David Singleton said the company’s association with Murray & Roberts was delivering real benefits.
“The markets in which we operate are strong and it is important that we are positioned to respond to growth opportunities,” Singleton said.
“This will require additional investment and scale which our agreement provides.”
Murray & Roberts Chairman and CEO Brian Bruce said his company had been very encouraged by the progress made by Clough in several areas of the business.
“This further investment shows that Murray & Roberts is fully supportive of Clough’s business model and its platform for sustainable success,” Bruce said.
The dispute over the BassGas project has hurt Clough, but the company has picked up several new major projects in the last nine months, including major offshore Indian developments, an integrated services contract for Woodside’s oil assets, and a slice of the pre-FEED work for Gorgon as part of the Kellogg Joint Venture.
