Bloomberg reports that Group Five is preparing a sale of three of its biggest subsidiaries as the Johannesburg-based construction giant strives to salvage what it can from business rescue proceedings.
David Lake, one of the company’s business rescue practitioners, identified the three companies as Intertoll Europe, a highway and toll developer based in Budapest, Everite, which does building and roofing work, and South African real-estate development firm G5 Properties. The three divisions are apparently “generating a lot of interest”. Group Five is one of five South African building companies to enter business rescue this year, as a depressed economy and low spending on infrastructure batters the industry. Lake and Peter van den Steen, the other business practitioner, have been hired to salvage what they can from the business and protect some of about 8,000 jobs. Group Five is also attempting to complete at least 65 unfinished construction projects. The work, alongside bank support and cash from smaller disposals, will enable the company to pay salaries and ongoing capital expenditure during the business rescue process, Lake indicated.
- Read the full original of Loni Prinsloo’s report on this story at Fin24
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