Aveng and Kutana BEE deal a step closer to completion

logoConstruction, infrastructure, energy, rail and mining giant, Aveng Propriety Limited, has advised of a circular to shareholders on Monday, 27 February 2017.

This announcement was made on the Johannesburg Stock Exchange (JSE) information dissemination service,SENS. The company said the purpose of the circular is to provide  shareholders with information relating to the proposed disposal of a 51% beneficial interest in the Grinaker-LTA business, owned and operated by Aveng Africa, to Kutana Construction. There shall also be a subsequent issue of a non-voting equity instrument by Kutana  to Aveng resulting in Aveng disposing of an effective 45% economic interest in the Grinaker-LTA business to Kutana Construction.

It was reported in late 2016 that Kutana Construction, a black women-owned construction group with a commitment to black economic empowerment (BEE) and transformation, is set to acquire the stake in Aveng .

Speaking at the shareholders annual general meeting (AGM), Aveng Limited chairman, Mohamed Seedat, announced that his company had recently entered into a binding agreement with Kutana Construction with the intention of substantially transforming the business.

Seedat said this transaction would achieve Aveng’s transformation objectives through partnering with a black women-owned and led company, while also resulting in the introduction of a CIBD-certified emerging contractor into the market. “Kutana Construction has committed to assisting Aveng Africa to fulfil its transformation obligation by means of the proposed transaction above,” he explained.

The company said the General Meeting to consider the resolutions required to effect the disposal will be held on Wednesday 29 March 2016.

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