Babcock Acquires South African High Voltage Transmission Business

In line with its strategy of developing businesses in South Africa, Babcock International Group announces the acquisition, on a debt free basis, of the high voltage power lines and mobile telecoms business of ABB South Africa (Pty) (Powerlines), for a consideration of £4.5 million, funded from existing banking facilities.

The Powerlines division reported turnover of £13.5 million in the year ended December 2005 and profit before interest and tax was £1.0 million. The business has a total order book in excess of £5.0 million and gross assets are £7.0 million.

Powerlines operates in two markets. These are high voltage transmission lines and mobile telecoms infrastructure. The business includes a tower and fittings manufacturing facility. These businesses will complement Babcock's power transmission and telecoms business in the UK and a combination of the skills and track record of EVE with those in South Africa will create major opportunities in rapidly growing infrastructure markets in Southern Africa.

Peter Rogers, Chief Executive of Babcock, commented: "We are delighted with this acquisition which extends our business with ESKOM in South Africa and mirrors the skills and abilities of EVE in the UK."

"The recent announcements in South Africa of substantial electricity generation infrastructure build offer excellent opportunities for growth in the powerlines sector."

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Posted 14/06/06

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