Picture: ISTOCK
Picture: ISTOCK

Construction and engineering group Group Five said on Friday that a bid by Greenbay to acquire its European assets had lapsed.

Group Five said it was not able to assess the fairness and reasonableness of the proposed R1.6bn cash deal within a given time frame, after Greenbay declined to grant an extension beyond Friday’s deadline.

The independent board, acting on the advice of the independent expert, needed enough time to asses the merits of the offer, which Group Five believed undervalued its assets.

The assets comprise concession stakes in central and eastern Europe‚ including its Bulgarian assets and Intertoll Europe operations and maintenance contracts that provide significant annuity income.

Greenbay first made an offer on Monday, sending Group Five shares up as much as 42%.

Group Five has plunged in value since the global financial crisis struck in late 2008. The stock was nearly R70 a share at the time but has languished amid years of appalling South African construction markets.

Greenbay is a real estate and infrastructure investments group listed on the JSE and in Mauritius.

Group Five shares were down 11% to R11.10 in late trade on the JSE on Friday.

With Mark Allix

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