Aveng disposing of Trident, Grinaker-LTA
PRETORIA – Aveng, the financially troubled listed construction and engineering group, plans to complete the disposal of non-core assets, including Trident Steel, Grinaker-LTA and its manufacturing business, by June next year.
The group said on Friday that there had been significant interest from credible buyers for the majority of the businesses earmarked for sale.
However, Aveng reported that adjustments of R2.2 billion to the non-core asset values had resulted from a change in the measurement criteria, because the realisable value had to be assessed under a different valuation approach, fair value less costs to sell.
Aveng said these adjustments would be reflected in basic earnings and basic earnings a share, but were excluded from headline earnings and headline earnings a share.
However, Aveng said that management had obtained independent valuations in support of the fair value assessments and remained confident that it would be able to realise acceptable values for these assets.
Aveng earlier this month reported that it had entered into agreements to sell its Van der Bijl Park and Jet Park properties for a total of R254 million.
These disposals were evidence of the commencement of the process to de-leverage the company and focus on core operations.
The disposal of the Jet Park property is still subject to shareholder approval.
Aveng on Friday also reported good progress with its plans to improve its liquidity position, the performance of non-core businesses and the turnaround of its open-cut mining contractor Moolmans, as well as the settlement of 20 of the 24 identified legacy claims of its Australian-based subsidiary McConnell Dowell in line with the expected values.
The group says that it expects to report a narrowing of its loss to a headline loss a share of between 297 cents and 329c for this reporting period compared to the 1 625.3c loss in the previous year.
- BUSINESS REPORT