Johannesburg - Aveng has renewed a cautionary announcement related to confidential discussions the listed construction and engineering group earlier entered into to sell at least part of its entire steel business.
The company said on Friday that shareholders were advised in February of various non-binding offers received from many parties to acquire, or partner with Aveng, for either the entire steel operating group or certain of its individual business units.
The offers were from both foreign and local potential buyers. Aveng said these confidential discussions were ongoing and advised shareholders to continue exercising caution when dealing in their Aveng securities.
Kobus Verster, the chief executive of Aveng, said in February that the decision to possibly divest from the steel business was based on longer-term strategic objectives.
Verster added that the outlook for steel in the near term was improving and given Aveng’s liquidity position, any transaction would, therefore, only occur at acceptable value.
Aveng Steel reported an increased net operating loss of R147 million in the six months to December from the R107m loss in the previous corresponding period. But Verster said it was not a business in distress.