The acquisition cost, for South Africa’s largest privately owned construction, civil engineering and contract mining business, has not been disclosed.
Teke, who is chairman of the Masimong Group, says that the deal remains conditional on the receipt of Competition Commission approval only.
Commenting on Masimong’s rationale for this transaction, he states: “Our acquisition of a controlling share in Liviero gives us direct exposure to a well-established business that has the size and scale to play a key role in critical growth sectors of the South African economy. It also supports our strategic goal to become a major black industrial player in South Africa.”
Liviero Group CEO Neil Cloete says that the agreement represents the beginning of an exciting new era for the 31-year-old Liviero Group.
“With Masimong’s acquisition of a majority stake in Liviero, the company will become the country’s largest black-controlled multi-disciplinary contractor,” he states. “Masimong brings varied expertise, energy, opportunities and a compelling shared vision to take the Liviero Group to the next level.”
“Along with enhanced opportunities to contribute to crucial infrastructure development projects, and the achievement of South Africa’s economic and social development goals, we will enjoy a stronger and more sustainable position in the market, for the benefit of all of our stakeholders, including our employees, clients, suppliers and unions,” he concludes.
Masimong is a broad based, black-owned and controlled investment group with a diversified portfolio of interests principally focussed on growing a platform of black controlled industrial businesses.
Led by Mike Teke, the current SA Chamber of Mines president and chairman of RBCT, Masimong has interests across diversified sectors, including mining, power and beneficiation, chemicals and financial services. Masimong recently increased its interest in Rolfes Holdings Ltd to 32% enabling the organisation to acquire Bragan Chemicals, a large food chemicals business.