CONGLOMERATES
Aveng shores up its balance sheet
The stronger balance sheet could enable the group to also improve the order books of its core businesses
After a handful of capital market transactions, including a rights offer, Aveng has shored up its balance sheet, giving the group space to concentrate on the disposal of noncore assets. The stronger balance sheet could enable the group, which is going through a rough patch, to also improve the order books of its core businesses Australian contractor McConnell Dowell and its open-cast mining business Moolmans. Speaking after the release of the company’s results for the year ended June 30, Aveng chair Eric Diack on Monday lauded the steps the company has taken to improve its capital structure. "We were heavily criticised. But we kept our heads down and did what we had to do. We have a solid balance sheet to execute our strategy," he said. In addition to the disposal of the noncore assets, Aveng’s strategic plan entails improving the revenue and profitability of the core businesses and reducing debt.
The group raised R493m in July through a rights offer. Aveng raised the money to...
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