The early redemption of R2bn convertible bonds, the successful rights issue and the renegotiation of bank debt by Aveng have raised hopes that the construction group’s downward spiral may be reversed. The past few years have been unkind to Aveng. A year ago, the company probably reached its lowest ebb when former CEO Kobus Verster resigned in a huff as it reported a wider full-year loss. Chair Eric Diack immediately assumed the duties of interim CEO, with the responsibility to steady the sinking ship. Diack has previously described 2017 as an extraordinarily difficult year. With its back against the wall and facing an uncertain future, in 2017 Aveng initiated a strategic review process to derisk the balance sheet, improve liquidity and set the company on a sustainable path.
This strategy forced the group to take a hard look at its financial and operational structure. Key elements of the strategy were improving liquidity and unlocking value from the group’s core assets. It came...
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