Engineering and construction group Murray & Roberts has sold its last remaining manufacturing business Genrec, to Nisela Capital for R185 million.

Murray & Roberts notes that the transaction with Nisela Capital, an asset management, private equity and advisory firm is still subject to certain conditions precedent and regulatory approvals.

The transaction is not classified as a categorised transaction according to section 9 of the JSE listing requirements.

Genrec was the last remaining manufacturing business in the company’s portfolio of businesses.

Murray & Roberts believes that the transaction is in the best interests of the long-term sustainability of both the company and its long-term strategy to focus on the global natural resources markets, as well as Genrec.

Murray & Roberts first announced the potential sale of Genrec in August when it also noted it would look to dispose of its Infrastructure and Building businesses.

This transaction excludes the Murray & Roberts investment in the Bombela Concession Company (BCC), Bombela Civil joint venture (BCJV) and Bombela Operating company, as well as the operations in the Middle East, where current projects are expected to be completed by December 2017 and no new projects are being pursued.

It is the group’s vision, by 2025, to be a leading multinational group that applies its project lifecycle capabilities to optimise fixed capital investment.

Murray & Roberts aims to achieve this by focusing its expertise and capacity on selected oil and gas; metals and minerals; and power and water market sectors.

Growing its capability in specialist engineering, commissioning and asset support and maintenance services in these market sectors, should yield higher margins and carry lower risk than services only provided in the construction segment of the project value chain.

This diversification is aimed at enhancing return to shareholders.