Picture Provided : GCIS

Business In The News

No change in Gautrain ownership – Transport MEC Vadi

JOHANNESBURG, August 23 – Gauteng Transport MEC Ismail Vadi on Wednesday slammed an announcement by construction company Murray & Roberts that it would soon acquire a 50 percent ownership in the Gautrain.

Vadi and the Gautrain Management Agency (GMA) said Tuesday’s announcement by M&R was “immature”.

“The Gautrain Management Agency further notes that the Gauteng provincial government has not received a formal notice of any change in shareholding in BCC [ Bombela Concession Company]. The province has thus not had an opportunity to review the transaction as it is entitled to under the concession agreement and its approval of the change in shareholding may be required.

“Any such media reports based on the Murray and Roberts announcement is thus premature,” Vadi and GMA said in a joint statement. “This serves to confirm that ownership of the entire Gautrain system is vested in the Gautrain Management Agency, a Gauteng provincial public entity.”

Announcing new ownership plans, M&R said it had raised its 33 percent stake in Gautrain operator BCC to 50 percent, after BBC shareholders Bouygues and Bombardier both agreed to each sell their 8.5 percent stake to M&R.

The construction company said it expected the deal, valued at R405 million, to be finalised before the end of the year.

ANA

Leave a Reply

Your email address will not be published. Required fields are marked *