BASIL Read on Friday identified which companies will remain wholly owned subsidiaries among the shareholdings sold in engineering project house TWP Holdings for R900m in cash to Australian engineering, procurement and construction group WorleyParsons (WP).
WP subsidiary WorleyParsons RSA Group will acquire TWP Carve-Out group entities, which includes TWP Limpopo Engineers, TWP Projects, Effluent Technologies, TWP Environmental Services, TWP Projects DRC SPRL, TWP Sud-America and Lisinfo 203 Trading, a joint venture of TWP Holdings.
The carve-out group excludes Basil Read Matomo Projects, TWP Matomo Process Plant, TWP Investments, LYT Architecture — previously TPSP Architects — and TWP Australia.
These entities will continue to operate as wholly owned subsidiaries of Basil Read, on a standalone basis within the group.
Basil Read says the unaudited pro forma financial effects of the transaction may not fairly present its financial position, changes in equity, results of operations, or cash flows. This includes the effect of its broad-based black economic empowerment transaction, involving 25.1% of the total issued share capital of Basil Read.
The JSE-listed group sold TWP Holdings in October to reduce debt, fund organic growth, and engage in other capital-management initiatives, including rewarding shareholders. This meant it was shedding much of its engineering, procurement and construction management consulting business, which is based on billable hours.
Basil Read CEO Marius Heyns said in October the group would now be able to concentrate on its core business. This consisted of construction and contract mining, and included a R2.7bn contract to build an airport on the South Atlantic island of St Helena for the British government.