An overwhelming majority of shareholders have voted in favour of Aveng disposing of Trident Steel, its last and most significant asset that formed part of a disposal strategy dating back to 2018.
In the AGM chaired by Philip Hourquebie on Wednesday morning, 99.98% of shareholders gave the sale R700m sale the green light.
For more than four years, the Johannesburg-based infrastructure, resources and mining group has been seeking to restructure and dispose of its noncore assets including Aveng Manufacturing and Trident Steel, and finally entered into a sale agreement to dispose of the latter in early October.
This consolidation will allow Aveng to focus on its two cash-generative core businesses: McConnell Dowell, a major engineering, construction and maintenance contractor operating in the building, infrastructure and resources sectors in Australia, New Zealand, the Pacific Islands, Southeast Asia and the Middle East; and Moolmans, its mining arm, which provides services from open-cut mining to shaft sinking and underground mining.
Hourquebie said seven of the 15 conditions precedent for the Trident transaction had been met and competition approval was expected by March.
However, he cautioned that the condition relating to the buyer securing the necessary working capital funding facilities is taking longer than expected and this in turn affects other conditions including credit insurance and supplier consent.
“Negotiations are progressing but will take longer to complete than originally envisaged,” Hourquebie said.
Trident, which focuses on supplying steel products to the automotive, rail and mining industries, has been bought by a new consortium known as Trident Steel Africa, which was specifically formed for the acquisition.
It comprises local and US private capital, including US-based private equity firm Ambassador Enterprises, Joseph Investments, Arbor Capital Investments and Trident Steel management.
Aveng CEO Sean Flanagan has said the proceeds of the sale would be used to pay off its debt in SA.
Major shareholders of the Johannesburg-based firm include Highbridge Capital Management, Whitebox Advisors, Steyn Capital, Absa, Standard Bank, Investec, FirstRand Retirement Fund and Rand Merchant Bank.
Aveng's shares closed 0.58% lower at R15.51 on Wednesday.
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