Aveng to sell Infraset to Colossal Africa Consortium

JSE-listed Aveng has entered into a binding term
sheet for the sale of the Aveng Infraset businesses, comprising the South
African division and the Infraset business of the
foreign subsidiaries of Aveng Africa, to the Colossal Africa Consortium.

Infraset was identified as a noncore asset during
Aveng’s strategic review, the results of which were announced in February 2018.

Colossal is a newly formed 
100%  black-owned  investment special purpose vehicle that is owned
by Isongo Investments
and  Colossal Africa Infrastructure.

Colossal Africa Infrastructure is a
company with interests in the materials supply sector, whereas Isongo is
a rail company providing specialised services and products for
railway industries.

Aveng will sell all the businesses of Infraset
in South Africa, Zambia, Mozambique, Swaziland

and Zimbabwe.

The proposed transaction will be structured on a
cash and debt free basis for a net transaction consideration of R180-million to
be settled in cash on the effective date of the transaction and a further cash
top-up of R20-million payable within two years if certain conditions are met.

The proceeds will be used to strengthen
Aveng’s financialposition
and reduce its overall debt.

The transaction is expected to close by no later than April 30. http://www.engineeringnews.co.za/article/aveng-to-sell-infraset-to-colossal-africa-consortium-2019-02-18