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Johannesburg - A unit of Murray & Roberts Holdings (M&R) will sell its offshore construction business to Malaysia's SapuraCrest Petroleum for $133m to focus on its mainstay onshore projects, the South African construction firm said on Monday.
Australia-listed Clough, which is 62% owned by M&R, has agreed to sell its offshore marine construction business to SapuraCrest for A$127m and will use the money to pay down debt and fund growth, M&R said.
Marine construction projects require significant capital investment and firms face stiff competition from big regional and global companies, M&R said.
The deal will allow Clough to focus on opportunities in onshore oil and gas projects, as well as the minerals markets in Australia, M&R said.
The transaction still requires the approval of the Malaysian central bank and SapuraCrest's shareholders.
SapuraCrest, a major Malaysian energy firm, is due to merge with rival Kencana in a $4bn deal that would create the country's No 5 oil and gas services company.
Malaysia has identified the domestic oil and gas sector as an important part of its economic transformation programme, a government effort to boost investment and raise the national income level.
Australia-listed Clough, which is 62% owned by M&R, has agreed to sell its offshore marine construction business to SapuraCrest for A$127m and will use the money to pay down debt and fund growth, M&R said.
Marine construction projects require significant capital investment and firms face stiff competition from big regional and global companies, M&R said.
The deal will allow Clough to focus on opportunities in onshore oil and gas projects, as well as the minerals markets in Australia, M&R said.
The transaction still requires the approval of the Malaysian central bank and SapuraCrest's shareholders.
SapuraCrest, a major Malaysian energy firm, is due to merge with rival Kencana in a $4bn deal that would create the country's No 5 oil and gas services company.
Malaysia has identified the domestic oil and gas sector as an important part of its economic transformation programme, a government effort to boost investment and raise the national income level.
