Categories: News

Trident Group in South Africa

Aveng Completes R1.22 Billion Sale of Trident Steel, Eliminating Legacy Debt

Johannesburg, South Africa – May 3, 2023

Aveng, the Johannesburg-listed construction and contract mining group, has successfully concluded the sale of its subsidiary, Trident Steel, for R1.22 billion. This strategic divestment marks a significant milestone in Aveng’s ongoing turnaround strategy, effectively eliminating the company’s legacy South African debt. (news24.com)

The buyer, Trident Steel Africa (TSA), is a newly formed entity backed by a consortium of local and U.S. private capital interests, including Ambassador Enterprises, Joseph Investments, Arbor Capital Investments, and Trident Steel’s management. The transaction comprises R700 million in purchase consideration, R264 million representing the cash portion of the business, and a ticking fee of R7.45 million per month. (thestar.co.za)

Aveng’s CEO, Sean Flanagan, expressed confidence in the sale, stating, “We are confident that the business is being sold to a credible consortium that will continue the business’s growth trajectory, thus securing the future of our people.” (thestar.co.za)

The proceeds from the sale will be utilized to settle the remaining outstanding R406 million South African debt, further strengthening Aveng’s financial position. This divestment aligns with Aveng’s strategy to simplify its operations and focus on its core businesses, McConnell Dowell and Moolmans. (thestar.co.za)

Following the announcement, Aveng’s share price experienced a notable increase, reflecting investor confidence in the company’s renewed focus and financial health. (news24.com)

This development signifies a pivotal moment for Aveng, positioning the company for future growth and operational efficiency in the competitive construction and mining sectors.