Turns out things have moved faster at RUC Cementation Mining Contractors than Street Talk anticipated. Macquarie’s refusal to tip in about $50 million as asset-backed lending, reported by this column on Thursday, was enough to wipe out Johannesburg-listed Murray & Roberts’ attempts to buy Perth-based RUC out of administration and return money due to creditors.
Those creditors have hired McGrathNicol to run a receivership for Murray & Roberts Pty Ltd, the Australian subsidiary which owns RUC and the since-sold Clough. In short, it’s game on for RUC’s suitors – we’ve heard ASX-listed peers Perenti and Macmahon Holdings took an early look – who have been biding their time on the sidelines since March 24, when Murray & Roberts struck a binding deal to buy back RUC out of administration.
The delays and failed deed of company arrangement sparked curiosity about Murray & Roberts’ ability to bankroll its ambitions to regain control of RUC and whether the situation would lead to a rebooted auction.
It was not known whether McGrathNicol would run a fresh auction or keep plugging away at a deal with Murray & Roberts. But with it taking the keys, it looks like creditors have lost patience with the South African mothership.
RUC offers design, engineering, excavation, construction and commissioning services to big mining groups like South32, Newmont, Goldfields and IGO. It posted $348 million revenue and $37 million EBITDA in the 2022 financial year, up from $241 million and $32 million one year earlier, according to the sale flyer from February.
Read more on afr.com