Sea Kay to sell Silver Falcon for R17m

Johannesburg - Construction and civil engineering group Sea Kay Holdings [JSE:SKY] said on Friday that it would offload the entire issued share capitals of Silver Falcon and Seriso 474, trading as Sedibeng Bricks for a combined total extending R17.343m.

Sea Kay said it had entered into its disposal of Silver Falcon with the purchaser Mr C Kruger, and the Corne Kruger Family Trust (an associate of the purchaser) through its wholly owned subsidiary Sea Kay Engineering Services.

Sea Kay will sell Silver Falcon for R7.343m to be settled through a reduction in the loan account owed by Sea Kay Engineering to the trust, Sea Kay said.

The group said the entire issued share capital of Sedibeng would be sold to the purchaser (Sedibeng) for R10m, to be settled through a reduction in the loan account owed by Sea Kay Engineering to the trust.

As rationale for the sale, Sea Kay said that currently both Silver Falcon and Sedibeng were unprofitable due to low levels of construction, a general decline in building activity and the cash-flow constraints of the group. "This places a greater burden on Sea Kay to concentrate on its core business and the transactions will immediately benefit the group's cash-flow position and ability to increase construction activities," it said.

Silver Falcon manufactures high strength, light steel frames for buildings, steel inside-building envelopes, roofs and steel roof trusses.

Sedibeng manufactures approximately 2.4 million cement bricks per month for low cost houses and general construction.

  - I-Net Bridge