Aveng has found A potential purchaser for its subsidiary Trident Metallic after technical factors about its classification weighed closely on the JSE-listed enchancment group’s efficiency and share worth.
It said on Monday that there was a “credible purchaser” and that the due diligence course of was “properly superior”.
“So far, Aveng has disposed of non-core belongings with mixed proceeds of Greater than R1 billion. Trident Metallic is The solely supplies asset nonetheless to be disposed of When it Includes the method,” it said in a market announcement.
“The proceeds from the transaction Shall be utilised to settle remaining exterior debt in South Africa, create further liquidity and strengthen the monetary place of Aveng.”
That is typically An important deal for the group, particularly Because it initially needed to have the subsidiary declared “held On the market”, in its end outcomes for the six months to 31 December. What occurred was that It Will undoubtedly Desired to declare Trident Metallic as a “persevering with enterprise”, which finally hit its end outcomes
The reclassification required The recognition of earlier intervals’ depreciation of R155 million, which was partially offset by a reversal of beforehand recognised impairments of R103 million. What this Outcomeed was a R52 million hit to the enterprise.
The group’s headline earnings decreased to R17 million, or 14 cents a share, from R109 million, or 226 cents per share Inside the earlier interval.
Its share worth plunged …….