SOUTH African engineering group Murray & Roberts will increase its interest in local engineer Clough to 49.1 per cent. Under the new equity agreement, Clough will make a placement of 30 million new shares at 50 cents each to Murray & Roberts to raise $15 million, increasing its stake in the company from 30.3 per cent. A loan facility agreement has also been reached in which Clough can draw down up to $15 million from the South African company. A further subscription of 15 million shares based on the volume-weighted average price for Clough’s ordinary shares for 60 days prior to the date of subscription is also under consideration. This will not take place until 61 days after the announcement of resolution of the BassGas dispute, or the second anniversary of completion of the first placement, whichever comes first. Murray & Roberts will also receive 60 million shares in Clough at 50 cents each from McRae, a Clough family company. Clough chief executive and managing director David Singleton said the association with Murray & Roberts continued to generate real benefits to Clough and that the additional investment provided by the agreement was important in order to respond to growth opportunities. If approved by shareholders, the transaction will be completed in late October. It is expected that, at that time, Roger Rees, an additional representative of Murray & Roberts, will join Clough’s board of directors.
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