15 July 2019

Aveng has entered into a fully funded binding sale of business agreement
with Ultra Asphalt for the sale of its Rand Roads business unit, subject to
certain conditions.

This followed a strategic review concluded last year wherein the
business was identified as noncore.

Rand Roads is a specialist division within Aveng Grinaker-LTA and its
service offering covers the full supply chain for road rehabilitation and
infrastructure, from bitumen binders modification to asphalt production.

Ultra Asphalt is a new investment special purpose vehicle whose
shareholders have a 10% interest in a plant-hire operating business in South
Africa specialising in mining, heavy plant equipment, quarries, road
development, road construction and rehabilitation and water supply.

Aveng will sell the operations of Rand Roads to Ultra on a cash free,
debt free basis. The proposed transaction will comprise the business of Rand
Roads, including all assets and liabilities of the business, and Aveng’s 15%
interest in Specialised Road Technologies.

The proposed transaction consideration is R30-million plus the value of
inventory as at the effective date (currently estimated at R7.5-million) with a
further working capital adjustment.

The proceeds from the sale will be used to strengthen the financial
position of Aveng.

The transaction is expected to close before October 31.

Rand Roads reported a R1-million loss after tax for the interim period
ended December 31, 2018.

Aveng has also entered a binding sale of business agreement with a newly formed investment special purpose vehicle (NewCo) for the sale of the Aveng Grinaker-LTA Ground Engineering business unit as a going concern.

Read the latest issue

Latest Issue