No change in Gautrain ownership – Vadi

Gauteng Transport MEC-VADI
No change in Gautrain ownership – Vadi

Gauteng Transport MEC Ismail Vadi on Wednesday slammed an announcement by construction company Murray & Roberts that it would soon acquire a 50% ownership in the Gautrain.

Vadi and the Gautrain Management Agency (GMA) said Tuesday’s announcement by M&R was premature.

“The Gautrain Management Agency further notes that the Gauteng provincial government has not received a formal notice of any change in shareholding in BCC [Bombela Concession Company]. The province has thus not had an opportunity to review the transaction as it is entitled to under the concession agreement and its approval of the change in shareholding may be required.

“Any such media reports based on the Murray and Roberts announcement is thus premature,” Vadi and GMA said in a joint statement. “This serves to confirm that ownership of the entire Gautrain system is vested in the Gautrain Management Agency, a Gauteng provincial public entity.”

Announcing new ownership plans, M&R said it had raised its 33% stake in Gautrain operator BCC to 50%, after BBC shareholders Bouygues and Bombardier both agreed to each sell their 8.5% stake to M&R.

The construction company said it expected the deal, valued at R405-million, to be finalised before the end of the year.

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