JSE-listed Aveng will sell Aveng Water and the Aveng Namibia Water business to Cambrose 735, a special purpose vehicle incorporated as a private company, Infinity Partners, for the purpose of the transaction, for R95-million.
Infinity Partners is a 100% black-owned company jointly held by E-Squared Investments and Aveng Water’s current MD Suzie Nkambule.
Aveng Water and Aveng Namibia Water were identified as noncore assets during Aveng’s earlier strategic review.
The proposed disposal also forms part of Aveng’s efforts to refocus on becoming an international infrastructure and resources group.
The proposed transaction addresses the retention of all existing jobs, surety for the continuation of existing clients’ contracts and sustainability to ensure future business success, Aveng indicated in a statement on Friday.
The proceeds from the sale will be used to strengthen the group’s financial position and applied as working capital to the remainder of the Grinaker-LTA business as previously agreed with the group’s South African lenders.
The transaction is excepted to close by the end of the first calendar quarter of this year.