Aveng soars on news of ‘advanced’ talks to sell Trident Steel

The share price of infrastructure and mining services group Aveng gained the most in more than six months after it said it is in advanced talks to sell the last remaining significant asset that formed part of a disposal strategy dating back to 2018, Trident Steel. 

Aveng’s share price rose by as much as 13.17% to R16.41 in intraday trade on Monday as the market welcomed the news that the company would finally dispose of Trident, which supplies a wide range of products. By the market close, Aveng’s share price has risen 8.69% to R15.76.

The stock has fallen more than 40% so far in 2022.

In February, news that the group had to reclassify Germiston-based Trident as a continuing operation due to a slow sales process rattled the market, sending Aveng’s shares down more than a fifth.

This required reclassification weighed on earnings for its half-year to end-December. The process saw R450m in assets transferred held for sale, and also resulted in the recognition of a prior period’s depreciation of R155m, partially offset by a reversal of already recognised impairments of R103m.