All monetary amounts are expressed
in millions of Rands |
| 46. |
SUBSIDIARY COMPANIES |
|
A list of the major subsidiary companies is set out in annexure 1. |
|
Although the group does not own more than half of the equity shares of the following companies, it has the power to govern
the financial and operating policies via inter alia shareholder agreements and therefore has control. Consequently these
companies are consolidated as subsidiaries. |
|
|
% direct ownership |
|
|
2007 |
2006 |
|
Murray & Roberts Abu Dhabi LLC |
49 |
49 |
|
Murray & Roberts Contractors (Middle East) LLC |
49 |
49 |
|
Johnson Arabia LLC |
49 |
49 |
| |
The financial year end of Johnson Arabia LLC is 31 December each year. For the purpose of consolidation, financial statements
are prepared for the 12 months ended 30 June each year. |
| 47. |
POST BALANCE SHEET EVENTS |
|
The Group has reached agreement with Clough Limited (Clough) and the Clough Family (McRae) on a comprehensive
recapitalisation package, including support for its strategic vessel acquisition program. Key aspects of the transaction are: |
|
| |
1. |
The agreed price for the total transaction is A$36,8 cents per share; |
| |
2. |
McRae will sell to Murray & Roberts 3% of issued shares (15,3 million shares) in September 2007; |
| |
3. |
Murray & Roberts will underwrite a Rights Issue to raise about A$40 million; |
| |
4. |
McRae agrees to cede its Rights Issue rights in the A$40 million raising to Murray & Roberts; |
| |
5. |
Murray & Roberts will be issued new shares in Clough (Placement) equal in volume to the McRae sale to Murray & Roberts
(15,3 million shares); |
| |
6. |
Murray & Roberts will convert its 2005 A$15 million loan into 30 million shares in terms of the agreement covering that loan; |
| |
7. |
McRae will sell its convertible notes to Murray & Roberts including the outstanding coupons for A$10,2 million; |
| |
8. |
Murray & Roberts will convert all its notes into ordinary Clough shares to suit its strategy. |
|
| The consequence of this agreement (subject to Clough shareholder approval) is that: |
|
| |
1. |
Murray & Roberts reaches more than 60% ownership in Clough within two years, at an average investment of A$46 cents
per share; |
| |
2. |
Post-recapitalisation, the NAV of Clough will be 23 cents per share at 30 June 2008. |
|
|
|
| |
The Group will consolidate Clough from 1 July 2007. |
