Photo by: Duane Daws
Construction major Aveng has offloaded its wholly-owned Australia- and New Zealand-based utility, resources and infrastructure contracting business Electrix to European concern Vinco Energies for some R1.4-billion in cash.
Aligned to the strategic objective of strengthening the financial position of the group by diversifying its funding sources, extending its debt maturity profile and reducing overall borrowing levels, Aveng said late on Friday that the sale of Electrix positioned the group for the next phase of growth in core markets.
“Aveng subsidiary McConnell Dowell, which owns Electrix, will continue to focus on the delivery of complex infrastructure projects in its traditional markets and continued growth in Asia, leveraging off its strong footprint and reputable history in that region,” the company said in a statement.
The transaction was expected to be finalised by October 31.
The Friday announcement followed the company’s placement of a R2-billion senior unsecured convertible bond with a coupon of 7.25%, maturing in July 2019, earlier this month.