Having recently announced that its wholly owned subsidiary Aveng Africa had reached an agreement with Kutana Steel whereby Kutana would acquire 70% interest in the Steeldale business for approximately R252 million, Aveng says it is still in talks with regards to the sale of its Aveng Trident Steel and Aveng Steel Fabrication business units.
This process also includes transforming its Aveng Grinaker-LTA business as well.
In early August Avenag advised that the monetisation of its four major infrastructure investments (ACP assets) had been concluded through a binding agreement with South African empowerment investment group Royal Bafokeng Holdings (RBH), for the sale of its entire interest in the investments.
The net asset value of the ACP assets was R860 million and after taxation profits attributable to the ACP assets was R132 million for the year ended 30 June 2016.
The net asset value of the interest from the 70% sale of the Steeldale business was R167 million and after taxation the loss attributable to the interest was R2 million for the year ended 30 June 2016.
The Kutana group of companies is a black women-owned investment group, headed by Thoko Mokgosi-Mwantembe, who is an independent non-executive director of the company and other major South African listed companies.
The sale to an affiliate of a director is deemed to be a sale to a related party and hence shareholder approval was required to complete the transaction.