Kutana Construction, a black women-owned and led company, will buy a majority 51% stake in Aveng subsidiary Aveng Grinaker-LTA, which services infrastructure, energy, rail and mining markets in Africa.
As the largest construction group in SA by turnover, Aveng said on Tuesday that this facilitated the introduction of “eligible” emerging black contractors, and black professional and management skills, into the ownership structures of the business.
It said this gave effect to the “transformation obligations contained in the settlement agreement reached with the South African government and also announced on Tuesday”.
This agreement commits six of the country’s largest construction and engineering groups to collectively pay R1.25bn over 12 years into a trust fund to accelerate transformation in the sector, in settlement of collusion claims in the industry.
“This demonstrates Aveng’s continued commitment to the South African economy by aligning the strategy of Aveng Grinaker-LTA with government’s economic transformation agenda and policies, to further the development and transformation of the South African construction sector,” Aveng said.
The purchase price, to be settled in full by 2020, is capped to a maximum amount of R756m, with a floor-price based on the fair value of the business at that future date.
Kutana CEO Thoko Mokgosi Mwantembe said the deal would help attract black professional and management skills to the construction sector.
