Thu, 8th August 2019
Another strategic milestone for Aveng: Aveng Grinaker-LTA Construction sold to black-owned Laula Consortium
Johannesburg, 8 August 2019: Global infrastructure and resources group, Aveng Limited today announced yet another non-core asset disposal with the sale of the Grinaker LTA Building and Civil Engineering business (Aveng Grinaker-LTA Construction) to the Laula Consortium (“Laula”) for a net amount of R100 million.
The Laula Consortium is a black-owned consortium which includes Oteo Investments Holdings Proprietary Limited, Manzini Ventures Proprietary Limited and Upsize Trading Proprietary Limited. Laula, which is led by Mlu Manci of Oteo, boasts black senior management experience going back to 1984 combined with technical experience in the major construction industry in South Africa, ranging from large civil infrastructure projects to complex, modern commercial buildings. Aveng Grinaker-LTA Construction comprises Aveng GLTA Buildings Inland, Aveng GLTA Buildings South, Aveng GLTA Buildings KZN, Aveng GLTA Civil Engineering, Aveng GLTA Plant and Yard, and Aveng GLTA Training School. As part of the Aveng Grinaker LTA group of companies, Aveng Grinaker-LTA Construction combines a proud South African heritage with the resources, skills and project management capabilities to deliver multi-disciplinary projects across a number of market sectors including power, public infrastructure, mining infrastructure, commercial, retail, industrial, and oil and gas.
Sean Flanagan, Aveng Chief Executive, said of the transaction: "We are very pleased to have found the right partner in Laula to unlock Aveng Grinaker-LTA Construction’s full potential and further enable its growth. The nature of the transaction will ensure a seamless transition for employees, customers and suppliers while making a sustainable contribution to transformation of the construction industry.”
Flanagan concluded: “We are building the Aveng of the future and while we operate in a very challenging market environment, we have a clear strategy to weather these headwinds and futureproof our business. This transaction marks yet another execution milestone and the proceeds of the disposal of non-core assets will be used to optimise our capital structure and leverage growth opportunities in selected markets.”
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