The sale of Trident Steel marks the end of a five-year journey during which Aveng reconfigured its portfolio by selling non-core assets,
Aveng has completed the sale of Trident Steel in a R1.2bn deal that leaves the infrastructure and resources group completely free of historical debt, long considered an achilles heel on its balance sheet.Its shares rose as much as 10% on the news before pulling back to trade 3.20% higher at R10.83 on the JSE by early afternoon, giving Aveng a market valuation of R1.3bn.
The project has been plagued by significant delays and negotiations are continuing with the client to take into account the impact of disruptions caused by the pandemic, supply chain disruptions, the Russia-Ukraine war, claims for extension of time, and difficulty in mobilising people to work on the site.
The move by FGEN LNG Corporation to pull the guarantees for the Batangas liquefied natural gas project prompted Aveng to warn shareholders it will incur losses in the year to end-June as a result of numerous delays in completing the gas project.
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