UPDATE 1-South Africa's Group Five to dispose of its manufacturing business

  • Reuters
  • Stock Market News
UPDATE 1-South Africa's Group Five to dispose of its manufacturing business
Credit: © Reuters.

(adds CEO quote)

JOHANNESBURG, Nov 7 (Reuters) - South African builder Group Five GRFJ.J said on Tuesday it will dispose of its manufacturing in due course as it re-evaluates its strategy and structure to address underperformance.

The group, which in October let lapse a 1.6 billion rand ($112 million) offer from Greenbay Properties GFP.MZ GRPJ.J for some of its assets, said it is evaluating multiple expressions of interest received for its manufacturing business, which makes building materials. Africa's construction industry has slowed sharply since the 2010 FIFA World Cup as infrastructure spending by President Jacob Zuma's government has stalled and weak commodity prices have hit demand from the mining industry.

"Against ongoing market and economic changes, we see an increasing role for being an enabler for the development of infrastructure projects in the markets in which we operate." Group Chief Executive Themba Mosai said in a statement.

"This requires an increased shift in emphasis from our historical construction emphasis towards development and investment opportunities, which necessitates the rationalisation of some of our businesses."

($1 = 14.1825 rand)

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