Tri­dent Steel won’t be sold

The Star Early Edition - - COMPANIES & NEWS -

CON­STRUC­TION com­pany Aveng told share­hold­ers yes­ter­day it had pulled the plug on ne­go­ti­a­tions for the dis­posal of Aveng Tri­dent Steel be­cause it had been un­able to reach agree­ment on an ac­cept­able value. Aveng chief ex­ec­u­tive Kobus Ver­ster said that, in re­cent months, the com­pany had con­tin­ued with var­i­ous in­ter­ven­tions that had re­sulted in the busi­ness be­ing able to gen­er­ate pos­i­tive cash flow de­spite tough mar­ket con­di­tions. “With the ter­mi­na­tion of ne­go­ti­a­tions, it is man­age­ment’s in­ten­tion to im­ple­ment fur­ther op­ti­mi­sa­tion ini­tia­tives within Aveng Tri­dent Steel. This in­cluded cap­i­tal­is­ing on its lead­ing po­si­tion within the au­to­mo­tive sec­tor,” Ver­ster said. He said the com­pany had been awarded R508 mil­lion to set­tle the dis­puted pay­ment for the Aus­tralian Queens­land Cur­tis Liq­ue­fied Nat­u­ral Gas (QCLNG) Ex­port Pipe­line pro­ject. “The QCLNG ar­bi­tra­tion award marks an im­por­tant mile­stone and brings an end to this pro­tracted le­gal process. This award al­lows us to re­move sub­stan­tial risk and un­cer­tainty from the com­pany,” Ver­ster said. The com­pany said it ex­pected to im­pair R2.4 bil­lion for the year to the end of June. It said the charge would re­duce earn­ings per share and head­line earn­ings per share by 595 cents each. – Di­neo Faku

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