Aveng announces disposal of 4 infrastructure projects
Aveng Limited, a multi- disciplinary construction and engineering group anchored in South Africa, has reached an agreement for the disposal of four of its major infrastructure investments.
For a cash consideration of ZAR860 million (US$64 million), Royal Bafokeng Holdings (Pty) Ltd (RBH) will acquire Aveng’s equity interests and loan in the following investments:
- The 138 MW Gouda wind farm, one of the largest wind farms in the Western Cape on which 46 wind turbines are erected.
- Imvelo Concession Company, which is the holder of a 27-year concession to build, operate and maintain the Department of Environmental Affairs’ office campus in Tshwane.
- N3 Toll Concessions, which entered into a 30-year concession agreement to design, construct, finance, operate and maintain the N3 toll road between the Cedara Interchange in KwaZulu-Natal to the Heidelberg South interchange in Gauteng.
- The 74 MW Sishen Solar Photovoltaic Plant located in the municipality of Dibeng in the Northern Cape.
These sales are subject to the normal and customary terms and conditions, including the fulfillment of certain conditions precedent. The effective date is estimated to be on or about 31 October 2016.
Kobus Verster, Aveng CEO, said:
“These investments have reached an appropriate maturity where we can transfer them to a strong investment company and realize value for the Group. Aveng Capital Partners will continue to pursue project development opportunities for the Group as our investment and structured financing arm.”
Albertinah Kekana, Royal Bafokeng Holdings CEO, commented:
“This proposed agreement and its focus on renewable energy, property and road infrastructure is in line with our diversification strategy. As a long term investor, we are pleased to be partnering with Aveng Capital Partners, the investment and structured financing arm of Aveng, which has a very credible track record in originating, developing, structuring and investing in general infrastructure, power and real estate projects in South Africa. This proposed deal represents our long term investment approach and our commitment to the South African growth story.”
