JOHANNESBURG, January 18 (ANA) - South African conglomerate Aveng said on Friday it had entered into a sale and purchase agreement with Infinity Partners for the sale of the shares in Aveng Water and the Aveng Namibia Water business.
Last February Aveng, which operates in steel, engineering, manufacturing, mining, concessions, public infrastructure and water treatment, said it intended to dispose of non-core assets and properties after a strategic review.
"This sale is another important step in the delivery of Aveng’s strategic action plan and in the refocusing of Aveng to become an international infrastructure and resources group," it said on Friday.
"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."
The fully-funded net transaction consideration is R95 million and will be settled in cash on a debt-free basis.
Aveng said the proceeds from the sale would be used to strengthen the financial position of the group and would be applied as working capital to the remainder of the Grinaker-LTA business as previously agreed with lenders.
Aveng Water is a leading water treatment process engineering and project delivery business offering services from project development to long term operations and maintenance.
Infinity Partners is a 100 percent black-owned company jointly held by E-Squared Investments and Suzie Nkambule, the current managing director of Aveng Water.