The noncore businesses were identified as part of a review process initiated in 2017 in a bid to stabilise the lossmaking group, which was facing serious liquidity and balance sheet pressures. Aveng has since restructured its balance sheet through a number of related transactions, including a R493-million rights issue and the implementation of an early redemption of a R2-billion convertible bond, due to mature in July 2019. Proceeds from the Aveng Rail
sale will be used to further strengthen Aveng’s financial
position and contribute to the overall reduction in debt.
Besides Aveng Rail
, some of the other businesses earmarked for sale are Grinaker-LTA, Trident Steel, Dynamic Fluid Control, Automation
& Control Solutions
, Duraset and Infraset.
Executive chairperson Eric Diack
reported recently that expressions of interest had been received for all the companies, but he also indicated that Grinaker-LTA was unlikely to be sold to a single buyer.