Construction and engineering company Stefanutti Stocks has entered into agreements to dispose of its subsidiaries in Mozambique and Mauritius as part of its restructuring plan.
The deal, worth about $4m, involves the sale of SS Construções (SS Mozambique) and Stefanutti Stocks Construction (SS Construction) in Mauritius. The proceeds from the sale are expected to be used to reduce the company’s debt.
The agreements have been signed with East Africa Enterprises, a privately owned company based in Dubai. Stefanutti Stocks will sell 100% of the shares in SS Construction for $700,000. The Mozambican subsidiary, SS Mozambique, will be sold for a combined amount of $3.2m.
Payment for both transactions is due by the end of this year and the sale will only be completed once all required regulatory approvals, lender consents and other conditions precedent are met, the company said on Wednesday. This disposal of the noncore assets forms part of a broader restructuring plan approved by the company’s board and lenders.
In its financial update in May, the company said it had made progress on its restructuring plan, with completion targeted for mid-2026.
Besides the disposal of subsidies in Mozambique and SA, outstanding components included finalising repayment terms for a settlement related to the Kalabo-Sikongo-Angola border gate road project in Zambia, and resolving contractual claims tied to the Kusile power station project.
Financially, the group reported a mixed performance for the year to end-February, with growth in its core business offset by concerns about its financial sustainability.
The group’s contract revenue from continuing operations rose 8% to R7.66bn, driven by solid project execution across its regional divisions.
Operating profit before investment income increased by 59% to R333m, and profit from continuing operations surged to R209m — a sevenfold increase compared to the prior year. Headline earnings per share (HEPS) turned positive at 109.36c, after a loss previously.
However, concern about the company’s financial health remained. Its current liabilities exceed assets by R1.3bn. Its auditors have highlighted a material uncertainty regarding the group’s ability to continue as a going concern in their review conclusion, casting doubt on the company’s ability to continue operating without challenges.
Stefanutti Stocks has operated in Mozambique since 1995 and recently expanded into Mauritius. The company provides a wide range of construction services including building, civil engineering, geotechnical work, and infrastructure development. It continues to prioritise quality, safety and sustainability across its operations.
SS Mozambique was established in 1995 and provides construction services, including building, civil engineering, geotechnical and roads and earthworks. SS Construction operates in the building sector in Mauritius.
Stefanutti Stocks operates in several African countries, including SA, Mozambique, Mauritius, Swaziland, Angola and Zambia.
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