Kutana Group, a pan-African investment company, is paying R252 million or almost $19 million to acquire a 70% stake in Steeledale, a steel reinforcing and mesh business. The stake is being acquired from Aveng, who retains the balance of the company’s ownership which it can elect to dispose of after 3 years have passed.
“The Steeledale acquisition forms a cornerstone of our steel and construction business strategy,” said Thoko Mokgosi Mwantembe, CEO of the Black Women-owned investment group. “With our experience and focus, we are uniquely positioned to drive the growth of the business in South Africa and we look forward to creating significant value for all our stakeholders.”
The sale is one of a number of disposals being pursued by publicly-listed Aveng as it looks to improve returns for its shareholders. The transaction will close once the normal and customary terms and conditions have been met.