Aveng Africa Proprietary Limited announced that Aveng has entered into a Business Agreement on 3 October 2022 to dispose of the business of Trident Steel as a going concern to Trident Steel Africa Proprietary Limited for an amount of ZAR 700 million, excluding cash on hand. The purchaser is a consortium of local and USA private capital, including US based private equity firm Ambassador Enterprises, Joseph Investments Proprietary Limited, Arbor Capital Investments Proprietary Limited and Trident Steel management.Trident Steel is a steel service centre business, conducted in South Africa, primarily focused on the supply of steel products to the automotive, rail and mining industries.Aveng will provide ZAR 210 million of funding to a separate company in order to subscribe for 30% of the equity and will thereby retain a 30% interest in the Business, specifically reserved for BBBEE participation, for a period of no longer than one year post closing. This 30% holding is subject to a call option in favour of the Purchaser, exercisable at any time post closing, for R210 million plus accrued interest (“the Call Option”) and payment to Aveng is secured by a demand guarantee.Aveng said “The Aveng strategy is to restructure the Group in order to ensure the Group’s sustainable future. The Trident Steel business falls outside the ambits of infrastructure development, resources and contract mining which underpin the Group’s future long-term strategy.”
Aveng Africa Proprietary Limited announced that Aveng has entered into a Business Agreement on 3 October 2022 to dispose of the business of Trident Steel as a going concern to Trident Steel Africa Proprietary Limited for an amount of ZAR 700 million, excluding cash on hand. The purchaser is a consortium of local and USA private capital, including US based private equity firm Ambassador Enterprises, Joseph Investments Proprietary Limited, Arbor Capital Investments Proprietary Limited and Trident Steel management.Trident Steel is a steel service centre business, conducted in South Africa, primarily focused on the supply of steel products to the automotive, rail and mining industries.Aveng will provide ZAR 210 million of funding to a separate company in order to subscribe for 30% of the equity and will thereby retain a 30% interest in the Business, specifically reserved for BBBEE participation, for a period of no longer than one year post closing. This 30% holding is subject to a call option in favour of the Purchaser, exercisable at any time post closing, for R210 million plus accrued interest (“the Call Option”) and payment to Aveng is secured by a demand guarantee.Aveng said “The Aveng strategy is to restructure the Group in order to ensure the Group’s sustainable future. The Trident Steel business falls outside the ambits of infrastructure development, resources and contract mining which underpin the Group’s future long-term strategy.”
