Aveng has entered a sale of business agreement with Videx Wire Products for the sale of the Aveng Duraset Alrode.
Duraset Alrode was identified as non-core as part of the strategic review and is a diversified supplier of engineered support solutions to the mining and geotechnical industries and has positioned itself over time as a leading supplier of safety critical products to the mining industry.
Videx is a leading manufacturer and supplier of roof support systems and ventilation ducting for the mining industry.
The company has been in the mining roof support industry since 1984 and prides itself on supplying innovative, cost effective and safe quality products
Particulars of the Proposed Transaction Aveng Duraset consists of operations conducted at its Alrode, Germiston, and Westonaria premises.
The Proposed Transaction is limited to the sale of the Duraset Alrode operation and product portfolio to Videx which includes all assets and liabilities of Duraset Alrode.
The Proposed Transaction consideration is R50 million in cash.
This will be subject to adjustment (up or down) based on the achievement of an aggregate sales target for the two months preceding the Effective Date.
The adjustment will be determined on the percentage difference between the actual sales achieved and the Target Sales.
The consideration is further subject to a net working capital adjustment. The minimum consideration payable is R30 million.
The proceeds from the sale will be used to reduce debt and strengthen the financial position of Aveng.