Murray & Roberts boosts stake in Clough

Murray & Roberts has lifted its stake in Clough Ltd to 46.1 per cent from 30.3 per cent after its shareholders agreed to a fresh injection of capital from the South African construction and engineering firm in return for allowing its stake to rise dramatically.
Murray & Roberts has secured the right to a further 30 million shares to be issued by Clough within two years in return for a convertible credit facility limited to $15 million ($10.94 million).
The Clough family's McRae Holdings also sold down its stake as part of the arrangement with Murray & Roberts. McRae has sold 60 million Clough shares to Murray & Roberts, taking its holding to 20.83 per cent, down from 32.7 per cent.

Clough corporate affairs manager Rob Ash said the transactions were in line with a change in shareholding approved at the company's annual general meeting held last week.

Clough managing director David Singleton revealed at the AGM the group would be forced to report losses in the current half year of between $25 million and $30 million on two offshore oil and gas contracts in India because of unprecedented commodity price rises and extended supplier delivery dates.

The company is expected to announce smaller contract wins in its oil and gas division tomorrow and next week.