JSE-listed capital equipment and solutions provider ELB Group will proceed with selling its Australian business, after a majority of shareholders voting in favour of the disposal.
The company hosted a general meeting on May 25 for shareholders to vote on the proposed disposal of ELB Australia.
ELB Australia imports, distributes and maintains underground utility construction equipment and green waste processing equipment. Markets served are gas, water, sewage, electricity, communications, the defence force and airport and dock authorities.
ELB Group in February announced the possibility of selling its Australian business, as part of a business restructuring exercise, which includes restructuring its lossmaking engineering services business.
“Following completion of the proposed initiatives, the company is expected to be appropriately structured for the current market environment and will consist of a market leading African equipment distribution business offering a range of earthmoving, construction, mining and quarrying equipment from a single supplier; and a restructured and refocussed engineering business operating within a clearly defined area of expertise,” the company previously said in a statement.
The ELB Engineering Services business has since been placed under business rescue, as a result of the depressed trading environment in South Africa.
ELB Group expects a deal with a buyer for the Australian business to close by June 30.
The company in February mentioned that the buyer was Contura Mining, an entity within the CFC Group of Companies, which is a diversified group of businesses with interests in distribution, supply chain logistics and specialising mining, infrastructure and utility services.
The consideration at the time for ELB Australia was A$19.2-million.