South Africa’s Aveng said on Tuesday Kutana Construction will take a 51% stake in its subsidiary for R756 million ($54 million) as part of a strategy to create opportunities for emerging black contractors.
The deal will take effect around Feb. 1 2017 and will be settled by 2020, capped at R756 million for Aveng Grinaker-LTA.
Chief Executive Officer Kobus Verster said the deal aims to help Aveng Grinaker-LTA, which has already undergone restructuring, become profitable again.
“As part of the next stage of our strategy, it is important to introduce an empowerment partner into the business … so as to position Aveng Grinaker-LTA for future growth and development,” said Aveng Chief Executive Kobus Verster.
Aveng narrowed its headline loss per share in August, helped by the completion of loss-making contracts.