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AVENG LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1944/018119/06)
ISIN: ZAE000302618
SHARE CODE: AEG
("Aveng" or "the Company" or “the Group”)
SETTLEMENT OF UNCERTIFIED CLAIM AND REPAYMENT OF EXTERNAL DEBT AND
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Settlement of Uncertified Claim
Aveng is pleased to announce that it has reached settlement on and received payment of R282 million (AUD25
million) for a long-outstanding claim. This long-standing claim was previously disclosed as an amount that had
been subject to protracted legal proceedings and reported in the amounts due from / (to) contract customers in
the December 2021 interim results.
The settlement results in a small profit to the previously reported position, reduced ongoing legal costs and the
removal of litigation uncertainty. This dispute dates back prior to March 2016, when McConnell Dowell instituted
action against its client, with a view to recovering previously expended costs. Through the course of this protracted
litigation and delay, McConnell Dowell has significantly grown its business despite having liquidity tied up in this
dispute. The resolution of the dispute is a significant achievement and the resulting additional liquidity has
currently been retained in McConnell Dowell and is reserved for future investment opportunities that add
incrementally to the Group’s growth and performance.
Repayment of External Debt
Aveng has continued its debt reduction strategy during the year to 30 June 2022, through the scheduled
repayment of R275 million in June 2022. The cumulative repayments have reduced external debt by R350 million
in the financial year to 30 June 2022. Should the Trident Steel transaction be successfully concluded, it is expected
that the proceeds will be utilised to settle the remaining debt in South Africa, create further liquidity and strengthen
the financial position of Aveng.
Renewal of cautionary announcement
In line with the cautionary announcement released on the SENS on 13 June 2022, negotiations continue to
progress and shareholders are advised to exercise caution when dealing in the Company’s securities.
The Group expects to release its full year results on or about 23 August 2022.
5 July 2022
Melrose Arch
JSE Sponsor
Investec Bank Limited
Itumeleng Lepere
Stakeholder Engagement Lead
Tel: 011 779 2800
Email: investor.relations@avenggroup.com
