Infrastructure and contract mining group Aveng is in advanced-stage negotiations with a credible buyer for its Trident Steel business – a division of Aveng Africa – as a going concern.
The disposal of Trident Steel is in line with Aveng’s 2018 strategy of disposing of assets which are deemed noncore to the company, with Trident Steel being the sole material asset still to be disposed of in terms of the strategy.
To date, Aveng has disposed of noncore assets for combined proceeds of more than R1-billion.
The value of the transaction is expected to exceed Trident Steel’s reported net asset value outlined in the 2022 Aveng interim results.
The proceeds from the transaction will be used to settle remaining external debt in South Africa, create further liquidity and strengthen the financial position of Aveng.
Aveng notes that, if successful, the transaction may have a material effect on the price of Aveng’s shares.
Due diligence is well advanced and will be completed “as soon as possible”.
The transaction is subject to the conclusion of black economic empowerment participation, the completion of legal agreements and conditions precedent.