Murray & Roberts’ RUC deal drags on; Macquarie takes a peek
It’s one step forward, two steps back for Johannesburg-listed Murray & Roberts’ attempts to buy back Perth-based RUC Cementation Mining Contractors out of administration.
It is understood Macquarie held talks to come in as a lender to help Murray & Roberts mop up the deal. The bank weighed investing about $50 million via an asset-backed loan, which would have helped Murray & Roberts pay back creditors, regain control of RUC and end the saga of its Australian administration – which has already seen Clough sold to Italy’s WeBuild.
RUC is an underground mining specialist. Tamara Voninski
However, the talks between the two camps did not firm up into a deal. Macquarie is no longer on the scene, sources told Street Talk.
What it all boils down to is that Murray & Roberts is still trying to regain control of Perth mining specialist. RUC recorded $348 million in revenues and $37 million in earnings in the 12 months to the end of June last year.
A spokesperson for Murray & Roberts declined to comment.
Deloitte, the company’s administrators, terminated Murray & Roberts’ deed of company arrangement on July 3, saying certain conditions precedent couldn’t be met. The termination came after the deal timeline was extended from June 30 to August 30, in line with an earlier report in Street Talk.
The delay in getting a deal done – binding terms were agreed on March 24 – has already had bankers and advisers sharpening their pencils in case RUC boomerangs back to the auction block. However, there were no signs of Deloitte inviting competing bidders into the tent as of Wednesday.
Sources said RUC was shopped around with a $100 million price tag, and attracted interest from ASX-listed peers Perenti Group and Macmahon Holdings before its
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