Shares in Aveng jumped more than 13% before paring gains earlier this week, after the South African construction firm said it anticipated it would halve its headline loss per share while completing loss-making contracts.
According to the company, it expects its headline loss per share for the year to end June to drop to between 45% and 55% (65 to 79 cents per share).
Aveng said it will use R252 million worth of proceeds from the sale of a 70% stake in its Steeledale business to strengthen its balance sheet. The aforementioned deal, with Kutana Steel, is expected to be complete by 1 November and includes between R93 million and R123 million in cas. The remainder is payable on a deferred basis. Aveng also made R860 million from the sale of Aveng Capital Partner's equity interests in four major infrastructure investments, due to be finalised by 5 November.
The company is still in talks over the sale of its Aveng Trident Steel and Aveng Steel Fabrication businesses.