JSE-listed infrastructure group Aveng has sold another noncore asset, its Grinaker-LTA Building and Civil Engineering business, to the Laula Consortium for R100-million.
The Laula Consortium includes Oteo Investments Holdings, Manzini Ventures and Upsize Trading.
The Aveng Grinaker-LTA business comprises divisions called Buildings Inland, Buildings South, Buildings KwaZulu-Natal, Civil Engineering, Plant and Yard and Training School.
“We are pleased to have found the right partner to unlock Aveng Grinaker-LTA’s full potential and further enable its growth,” Aveng CE Sean Flanagan said last week.
Amid a challenging market environment, which includes depressed demand in many of the sectors in which Aveng operates, the company has been focused on simplifying and optimising its portfolio of core businesses.
Since August last year, Aveng has disposed of its Duraset Alrode, Water, Rail, Dynamic Fluid Control, Infraset, Rand Roads and Ground Engineering businesses.
Flanagan reported that the company was making progress to reduce debt and create liquidity through the sale of noncore businesses, realising a more sustainable, long-term capital structure for Aveng.