Aveng sells railway-sleeper maker for a song
Construction firm sells Infraset subsidiary after significant writedown
Construction group Aveng has sold its railway-sleeper maker Infraset for R200m, for less than half of what it was valued at in June 2018. Marc Ter Mors, an analyst at SBG Securities, said the fact that Aveng was willing to sell the unit below its book value at the end of the previous financial year, shows the difficulty in the construction sector. Infraset, which manufactures railway sleepers and concrete paving products, reduced its net asset value from R491m in June 2018 to R126m. The sector is going through an incredibly difficult period that has seen companies such as Basil Read going into business rescue and Group Five being technically insolvent. The problems in the local construction sector have prompted Aveng to transition into an international infrastructure and resources business. It is disposing of noncore assets such as Infraset, which will be taken over by Colossal, comprising Isongo Investments and Colossal Africa Infrastructure. Colossal Africa Infrastructure has inte...
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