South Africa’s Group Five puts units up for sale in rescue plan

South African construction giant Group Five has placed three of its biggest subsidiaries up for sale as the company looks to salvage what it can from bankruptcy proceedings.

David Lake, one of the Johannesburg-based company’s business rescue practitioners, said in an interview that Intertoll Europe, a highway and toll developer based in Budapest, is among the trio of assets placed on the market.

Building and roofing company Everite and South African real estate development firm G5 Properties are the other two up for sale, Lake revealed.

“The group is looking to get fair value for all deals, including larger sales of subsidiaries,” said Lake, a former managing director of Rothschild & Co.’s South African unit. The three divisions are ‘generating a lot of interest,’ he added.

Once valued at as much as R8.2 billion, Group Five filed for bankruptcy protection in March and is one of five South African building companies to enter business rescue this year as a depressed economy and low infrastructure spending ravages the sector.

Group Five is also attempting to complete at least 65 unfinished construction projects, according to Lake. The work, alongside bank support and cash from smaller disposals, will enable the company to pay salaries and ongoing capital expenditure during the bankruptcy process.

@ABNetworkOnline