South African construction group Basil Read is selling subsidiary SprayPave (a manufacturer of bituminous road binder) to Much Asphalt for ZAR 78.6 million (€5.16 million/US$5.68 million).
The deal includes ZAR 9.1 million of SprayPave shares; ZAR 24 million for the business of group subsidiary Armac (which owns the property and some plant and equipment assets), and the remainder for sale claims and Basil Read equipment.
The purchase consideration may be adjusted downwards depending on actual working capital and net debt balances yet to be confirmed or if certain commissioning costs and milestone payments pertaining to the plant are not made.
Basil Read will use the funds for debt reduction and capital management initiatives.
