SOUTH AFRICA – Stefanutti Stocks Holdings, one of South Africa’s leading multidisciplinary construction groups, is selling its mining services division, comprising the materials handling and tailings management sub-divisions, but excluding the contract mining sub-division, for US$5.5 million, the company has disclosed.
The buyer, whose name was not disclosed, would pay cash and the deal formed part of the restructuring that Stefanutti was implementing, following the appointment of a restructuring team to formulate a turnaround programme for the group.
The restructuring also envisaged the securing of short term funding and the sale of non-core assets as well as the sale of certain divisions and subsidiaries.
The contract mining sub-division, which does not form part of the proposed transaction, provides open-pit mine services for clients, including design, planning and optimisation of mine plans, contract mining, crushing, and screening, drilling, and blasting and rehabilitation closure.
The Company offers various services with multidisciplinary expertise, including concrete structures, marine construction, piling and geotechnical services, roads and earthworks, bulk pipelines, mine residue disposal facilities (mainly tailings dams), open pit contract mining, all forms of building works, including housing, mechanical, electrical installation, and construction.
It operates in South Africa and sub-Saharan Africa, including countries, such as Botswana, Lesotho, Mozambique, Namibia, Nigeria, Swaziland, and Zambia, as well as in the Middle East, with an office in Dubai.
The Johannesburg Stock Exchange listed company caters to governments, state-owned companies, local authorities, industrial and mining corporations, financial institutions, and property developers.
In 2020, the group said that it had made progress in reconfiguring its organisational structure to improve operational performance, and to decrease overhead costs, including the reduction of the headcount.
It revealed that the overall restructuring plan included the sale of non-core assets, including business units, internal reconfiguration, securing of additional short-term funding of US$29.5 million and a favourable outcome from contract claims on the Eskom’s Kusile power project.
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