Announcement regarding termination of Aveng Grinaker LTA Transaction

  1. On 11 October 2016, shareholders were advised that Aveng Africa (Pty) Ltd (Aveng), a wholly-owned subsidiary of Aveng Limited, entered into binding agreements with Singabakhi Holdings (Pty) Ltd (previously Kutana Construction (Pty) Ltd (Kutana Construction) whereby Kutana Construction was to acquire an indirect 51% stake in the Aveng Grinaker LTA business on or about 1 February 2017, which was later extended to 1 April 2017. Shareholders approved this transaction, including certain conditions precedent, on 29 March 2017. These conditions precedent included the condition that Kutana Construction enters into the necessary funding arrangements to obtain funding of an upfront payment of R20 million, and such arrangements having become unconditional (Funding Condition). Certain of the conditions precedent were not met in time, including the Funding Condition. The parties agreed to amended the date of fulfilment of the conditions precedent to 29 September 2017 (the Fulfilment Date), and the effective date was intended to be 1 October 2017.
  2. The Funding Condition was not fulfilled prior to the Fulfilment Date. As a result of this, the agreement with Kutana Construction has terminated.
  3. Aveng remains committed to its obligations in terms of the settlement agreement concluded with the Government of the Republic of South Africa (Settlement Agreement). Aveng has initiated the necessary actions to ensure it complies with the Settlement Agreement.
  4. Further information will be published in due course.