Bren wins another Africa contract, will build water infrastructure worth $150 million
Infrastructure company Bren said today that a subsidiary signed a memorandum of understanding with a country in West Africa to carry out a project to build a raw water pumping station, a drinking water treatment facility and a water transmission and distribution network. The project is expected to take 24 months, and the anticipated consideration for Bren is $150 million. The memorandum of understanding is subject to the completion of several conditions, including the signing of a final agreement within six months.
This is the fourth memorandum of understanding Bren has reported in the past month for projects in African countries, with a combined value of $550 million. Bren shares rose 0.7% in trading on the Tel Aviv Stock Exchange today, against the market trend.
The current report follows Bren’s announcement on May 21 that it had signed a memorandum of understanding with a country in West Africa for a project to build end-of-line systems for processing agricultural produce, cleaning and drying grains. In that case too, the memorandum is contingent on the signing of a final agreement within six months, and the expected consideration is 90 million euros, or about $100 million.
On May 26, Bren reported two additional memorandums of understanding in a country in southern Africa, each worth $150 million. One project concerns the construction of a hospital, and the other the construction of a university. In those cases, Bren’s subsidiary was given 36 months to sign a full agreement, during which it will enjoy exclusivity with the African state.
In addition, Bren said it has partnered with India’s MEIL to submit a bid for the Israel metro project. The partnership is strategic and is competing for the first stage of the project, in a tender valued at 65 billion shekels.
Bren’s controlling shareholders are Avichai Stoleru, who holds 31% of the shares, and Meir Dor, who holds 15%. The company is managed by Itzhak Frank and is traded on the Tel Aviv Stock Exchange at a valuation of 570 million shekels. Bren also said it plans to raise a new bond series.
