JSE-listed construction group Aveng has entered into a binding agreement to sell its Aveng Duraset Alrode business to Videx Wire Products for R50-million.
Duraset Alrode is a diversified supplier of engineered support solutions to the mining and geotechnical industries.
Videx manufactures roof support systems and ventilation ducting for the mining industry.
Aveng expects the transaction to be concluded by October 31.
Aveng on Wednesday commented that, amid a challenging market environment, which included depressed demand in many of the sectors in which it operates, the company had been focused on simplifying and optimising its portfolio of core businesses.
Since August last year, Aveng has disposed of its Water, Rail, Dynamic Fluid Control, Infraset, Rand Roads and Ground Engineering businesses.
CE Sean Flanagan said in a statement on Wednesday 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.