Aveng has disposed of its Aveng Water subsidiary, which includes Aveng Water Proprietary Limited and the Aveng Namibia Water business, following the outcome of a strategic review by the company which deemed these as non-core assets.
The outcome of the review, which was concluded in February 2018, was the adoption by the company of a new and focused strategy to be an international infrastructure and resources group operating in selected markets and capitalising on its considerable knowledge and experience. As part of this strategic review, the company announced that it intends to dispose of certain non-core assets and properties.
Aveng has entered into a sale and purchase agreement (SPA) with Cambrose 735, a special purpose vehicle incorporated as a private company (Infinity Partners), for the sale of the shares in Aveng Water.
Infinity Partners is a 100% Black-owned company jointly held by investor E-Squared Investments and Suzie Nkambule, the current MD of Aveng Water who has led the successful turnaround of the business for the past three years. Suzie Nkambule is a fellow of the Allan Gray Orbis Foundation and will lead the business as it builds on its strategy and capabilities to become a leading water infrastructure development and technology company operating across sub-Saharan Africa.
This sale is another important step in the delivery of the company's Strategic Action Plan and in the refocussing of the company to become an international infrastructure and resources group. The proposed transaction addresses the retention of all existing jobs, surety for the continuation of existing clients’ contracts, and sustainability to ensure the business remains successful well into the future.
Aveng will sell 100% of the issued shares of Aveng Water Proprietary Limited and the assets and liabilities and the business of the Aveng Namibia Water from Aveng Namibia.
The fully-funded net transaction consideration of R95 million will be settled in cash on a debt-free basis. The proceeds from the sale will be used to strengthen the financial position of the group and will be applied as working capital to the remainder of the Grinaker-LTA business as previously agreed with the group’s South African lenders in the Common Terms Agreement.
The transaction, which remains subject to a number of conditions, is expected to close by the end of the first calendar quarter of 2019.