WBHO confirms it has received an offer for Probuild
Construction group Wilson Bayly Holmes-Ovcon (WBHO) said on Wednesday that it is mulling an offer for its 88% stake in Australian construction subsidiary Probuild.
The offer came from a “major international construction and civil services company”, the group said.
Probuild had brought in about R8.5bn of the group’s R23bn revenue for the six months to end-December.
WBHO said it was optimistic about the long-term fundamentals of Probuild and its longer-term growth prospects in the Australian market, and was still in talks over the offer, which were conditional and non-binding.
In a separate trading update on Wednesday, WBHO warned that headline earnings per share (HEPS) for its year to end-June are expected to be at least 150% lower than the year-earlier period.
“WBHO is aware of the immense pressure that Covid-19 will undoubtedly place on the economies of those countries in which it operates, has forecast the impact of these pressures into its future cash flows and is taking all necessary steps to preserve cash reserves,” the group said.
In morning trade on Wednesday WBHO’s share price was down 5.06% to R94.85, putting it on track for its worst one-day performance in more than two weeks.