JSE-listed engineering and mining services group Murray & Roberts' (M&R's) subsidiary M&R UK has entered into a share sale agreement with Perth-based AvidSys Group, in terms of which it will dispose of its 65% shareholding in mining technology company Insig Technologies.
Murray & Roberts has, over the past few years, developed Insig from a small technology company into a mining technology solutions provider.
However, Insig requires further investment to support its growth trajectory, which AvidSys will provide, and M&R's multinational mining platform will continue to make use of services provided by Insig, the group said.
The disposal consideration will comprise a nominal value of A$1, with AvidSys assuming A$7-million of Insig’s liabilities. The disposal will reduce M&R UK's liabilities by A$7-million. Insig had a net asset value of A$2.9-million and made a loss of A$1.7-million for the financial year ended February 28.
The transaction was effective from the execution date of March 27, and the completion date is August 31.
Insig is a Perth-based Australian mining technology company focused on developing mine automation services, providing sensor, software and autonomous solutions by using equipment and personnel tracking for improving efficiency and quality across the mining value chain.
AvidSys is an international group based in Perth, Australia, with a presence in Australia and India. AvidSys operates across several market sectors, including the metals and mining industry. The beneficial owners of AvidSys are the Gautam family.
AvidSys is experienced in technology development, product innovation and mining services, mining and construction infrastructure development.
The acquisition supports its strategy to develop a vertically and horizontally integrated business with investments in mining, raw material processing, construction, mining services and renewable energy, including green hydrogen and infrastructure development.