The infrastructure and contract mining group has won the support of investors to raise more capital as it reduces debt to sustainable levels and refocuses its business.
Shareholders have thrown their weight behind Aveng, once the JSE's most valuable construction group, which has been reduced to tapping investors for cash. In a rare move, the company's shareholders not only supported a recent capital raise, but said they wanted to invest more cash to support its recovery.
At an extraordinary general meeting this week, more than 98% of shareholders voted in support of another R100-million rights offer after supporting a R300-million capital raise in March as part of a balance sheet restructure.
Apart from turning to shareholders, the company has also been selling non-core businesses piecemeal as it battles to recover from a massive cash crunch due to expensive debt it had to service while navigating the downturn across the construction sector that followed the 2010 Fifa World Cup.
Operations that have been sold or are in the process of being disposed of include Aveng Trident Steel, Aveng Grinaker-LTA, Aveng Manufacturing, and some properties. The disposals will leave it focused on engineering, construction and maintenance contractor McConnell Dowell in Australia and...