AEG : Update on the status of previously reported disposals:
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
SHARE CODE: AEG
("Aveng" or "the Group")
Update on the status of previously reported disposals
This announcement provides an update on the following disposals:
- Aveng Dynamic Fluid Control ("DFC"), announced on 5 July 2019;
- Aveng Grinaker-LTA Rand Roads ("Rand Roads"), announced on 12 July 2019; and
- Aveng Grinaker-LTA Building and Civil Engineering business ("Aveng Grinaker-LTA
Construction"), announced on 8 August 2019.
All consents and conditions precedent have been fulfilled or waived and the purchase price of R129
million has been received. The purchase price is subject to a final working capital adjustment that is
to be agreed with the purchaser.
All consents and conditions precedent have been fulfilled or waived, the upfront payment of R25
million has been received, the transaction has become effective, and the business has been
delivered to the purchaser. There has been no change to the originally announced terms of the
Aveng Grinaker-LTA Construction
All consents and conditions precedent have been fulfilled or waived, the transaction has become
effective and the business has been delivered to the purchaser. The purchase consideration is
subject to a working capital adjustment. This adjustment will result in a reduction of R30.5 million to
the previously announced consideration of R100 million. The settlement of the consideration will be
- An initial payment of R20 million settled via 6 equal monthly instalments, commencing on
the 25th day of the 6th month following the closing date; and
- A further R49.5 million which will be settled by no later than the second anniversary of the
The disposal of the Grinaker-LTA Ground Engineering business unit ("GEL") was announced on 12
July 2019. This transaction will not proceed in its current form, as a result of the purchaser
subsequently being unable to secure the requisite funding of R7.5 million.
GEL was identified as non-core as part of the strategic review, undertaken by the Group in February
2018, and continues to be deemed as such. Therefore, Aveng will continue to explore alternatives to
affect the disposal of the business.
6 December 2019
JSE Sponsor to Aveng Proprietary Limited
UBS South Africa Proprietary Limited
Legal Advisors to Aveng Proprietary Limited
Group Executive: Strategy & Investor Relations
Tel: 011 779 2979
Date: 06-12-2019 12:20:00
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