Murray & Roberts (M&R) Limited has entered business rescue due to a severe cash crunch in its South African operations.
The company, whose shares have fallen 64% recently, is also looking to sell noncore assets to improve its finances. CEO Henry Laas said that the core underground mining business will continue to operate.
M&R has R409-million in debt, which it plans to repay by selling assets. The company has not paid dividends since 2019, leaving shareholders waiting longer for returns.
M&R’s OptiPower division faces challenges, including a significant contract for a solar energy project, raising concerns about its future. Cost-saving measures include downsizing office space to save R100-million annually.
This post was originally published on here
