Aveng's share price surges as Moolmans sale talks progress

AVENG’S share price shot up over 7% on the JSE after it announced it is in talks to sell its South African asset, the Moolmans contract mining company, as its strategy to create two independent businesses progresses.

- EDWARD WEST

CEO Scott Cummins said Tuesday that although the talks to sell Moolmans were fairly advanced, he was not yet in a position to disclose when it might be finalised. Aveng’s other operating brands, MacConnell Dowell, which does infrastructure and construction, operates in Australia, New Zealand & Pacific Islands and Southeast Asia, while the building segment, branded Built Environs, operates in New Zealand and the states of Victoria.

Aveng's share price traded at R5.15 on the JSE on Tuesday morning, this after drifting from R10 a share a year ago. Cummins said in an interview with Business Report they were still assessing the best options for the future of MacConnell Dowell, such as whether it should be sold or operated on a standalone basis, whether it should delist from the JSE or list also in Australia, and they might be ready to present the best option to the board in the first half of the next financial year.

He said the final price for Moolmans would likely include a consideration to take into account the contract dispute at Tshipi mine, which had gone to a formal dispute resolution process.