Tiso Blackstar says it will increase its interest in Robor from 19.4% to 51%. Tiso Blackstar will purchase additional ordinary shares in Robor from certain existing Robor shareholders for a consideration of R29.6m (£1.5m) which will be settled through the issue of new Tiso Blackstar shares at intrinsic net asset value per share.
Established in 1922, Robor (a private South African company), is a manufacturer and supplier of welded steel tube and pipe, cold formed steel profiles and associated value added products. The company also supplies, distributes and adds value to carbon steel coil, plate, sheet and structural profiles. Robor is the largest tube and pipe solution company in Southern Africa and is active in most industries including, mining transport – rail and road, construction, engineering, manufacturing, agriculture, energy, water and automotive. Robor’s mission is to be an engineering steel, tube and pipe company with an African focus. Robor generated a profit of R74.8m (£3.8m) before extraordinary items and taxation for its year ended 30 September 2014. Robor has recently completed a strategic acquisition of Tricom Structures who design, develop and manufacture steel structures for telecom tower companies, cell phone operators and power sectors. The demand for Tricom products/solutions is growing in Africa and will add value to Robor’s capabilities in terms of providing solutions across various market segments.
The Board is of the view that the Company is buying Robor at a cyclical low and therefore at an attractive time in the cycle and at an attractive price. Robor has an existing and growing African footprint that will benefit from the increasing infrastructure spend taking place on the African continent. With a strong balance sheet and an aligned management team who will hold the remaining 49% of the shares in the company, Robor is well positioned for expansion and growth.
TBGR : Tiso Blackstar ups stake in Robor