Kutana Construction, now known as Singabakhi Holdings, denied on Sunday it had failed to fulfil certain conditions to buy a 51% interest in Grinaker-LTA, the African infrastructure subsidiary of JSE-listed construction and engineering group Aveng. Aveng had said on Friday it was terminating an agreement to sell a 51% interest in its Grinaker-LTA unit to the subsidiary of the black women-owned Kutana Group, claiming it was unable to make an upfront payment of R20m. The deal was meant to create opportunities for black contractors in infrastructure development as agreed between the government and country’s major construction groups in a "settlement agreement" signed in late 2016. Kutana said that the difficulties encountered in closing the deal related to the unexpected underperformance by Grinaker-LTA rather than Kutana’s ability to fund the transaction. "Furthermore, the ongoing strategic review announced by Aveng on September 26 2017 has raised significant concerns for Kutana … rega...
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