CAPE TOWN - Aveng has sold its Aveng Duraset Alrode engineering supplier operation for R50 million cash as part of its strategy to reduce debt and dispose of non-core assets.
Aveng CE Sean Flanagan said in a statement yesterday they had entered into a binding agreement to sell Duraset Alrode to Videx Wire Product, subject to certain contractual conditions.
Duraset Alrode is a diversified supplier of engineered support solutions to the mining and geotechnical industries and is a leading supplier of critical safety products to the mining industry.
Videx is a leading manufacturer and supplier of roof support systems and ventilation ducting for the mining industry.
The company has been in the mining roof support industry since 1984 and prides itself on supplying innovative, cost effective and safe quality products.
The transaction is expected to be completed by October 31, 2019.
Aveng management has been simplifying and optimising the portfolio of core businesses due to the challenging market environment in many of the sectors that the group operates in and reduced infrastructure investment in the country..
The disposal of non-core assets is designed to improve revenue growth and profitability of the group.
Since August 2018 Aveng has disposed of non-core property assets and businesses, which include Aveng Water, Aveng Rail, Aveng DFC, Aveng Infraset and most recently the announcement of the sales of Aveng Rand Roads and the Ground Engineering businesses.
“We are making real progress in our commitment to stakeholders to reduce debt and create liquidity through the sale of non-core businesses. In doing so, we are realising a more sustainable, long-term capital structure for Aveng that will enable the core businesses of the group to reach their full potential,” said Flanagan.