Picture: ISTOCK
Picture: ISTOCK

Struggling construction company Group Five has entered into binding agreements for the sale of some of its assets that will generate R709m.

The agreements include the sale of a 40.1% interest in Intertoll Capital Partners. 

The company went into business rescue in March after it could not obtain additional funding from a consortium of lenders.

“The business rescue proceedings are progressing under challenging conditions, but with greater stability after approximately eight weeks under administration,” the company said.

Earlier in May, Group Five announced plans to sell some of its assets. On Wednesday, it said that in the disposal of assets, business rescue practitioners David Lake and Peter van den Steen of Metis Corporate Advisory had followed “a measured process that will achieve the optimal value for the group’s quality assets”.

Group Five said that in addition to Intertoll, it had entered into binding agreements for the disposal of a 50% shareholding in Barnes Reinforcing Industries, a producer and supplier of steel products, and a 29.9% stake in Jozi Power, a niche company focused on supplying standby power and power rental solutions to mining and industrial customers.

Jozi Power owns, operates and maintains a fleet of diesel generators.

Group Five said it had also entered into agreements for the sale of plant, assets and property “not utilised in the course of business”.

It said the proceeds received from assets would be used to reduce debt and also to settle working capital requirements.