Group Five sells two noncore manufacturing firms
The sale of Everite and Sky Sands will ease the struggling construction group's liquidity woes
Group Five has sold its manufacturing assets, Everite and Sky Sands, to a consortium comprising of private equity companies Trinitas Private Equity and Agile Capital for R480m, the struggling construction firm says. The sale is part of the company’s restructuring and disposal of noncore assets, including those in the better-performing manufacturing cluster. In the 2018 financial year, only the investment and concessions, and the manufacturing clusters generated free cash flow.
In its 2018 annual report, Group Five —which reported a R1.3bn net loss in the 2018 financial year — singled out the conclusion of the manufacturing assets among its priorities in 2019. In the report, Group Five CEO Themba Mosai said the company’s new strategy also entailed “decreased focus” on engineering procurement and construction and the turnkey project solutions. The transaction, which sent Group Five’s shares up 40% to 35c, is part of the company’s review of its strategy and structure in order...
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