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JOHANNESBURG - AECI Limited (JSE:AFE), a South African chemicals group, has announced the successful completion of its divestiture of Much Asphalt (Proprietary) Limited, a wholly-owned subsidiary. The transaction, which was finalized on a "locked-box" basis effective December 31, 2024, concluded with the transfer of the R1.1 billion purchase consideration to AECI.
The sale of Much Asphalt aligns with AECI’s strategic focus on streamlining its operations and concentrating on its core businesses, AECI Mining and AECI Chemicals. The company is divesting from non-core businesses that provide limited synergies with its primary operations. This approach is intended to enhance efficiency and leverage AECI’s competitive advantage in areas with strong market potential.
The board of AECI expressed gratitude to the management and staff of Much Asphalt for their commitment and support over the years and anticipates the subsidiary’s continued growth and success under new ownership.
The capital obtained from the sale will be utilized in accordance with AECI’s capital allocation framework. The transaction’s successful closure was previously announced to shareholders and noteholders through the JSE Limited’s Stock Exchange News Service on November 4, 2024.
This strategic move by AECI reflects its ongoing efforts to optimize its portfolio and create a solid foundation for future growth. The information is based on a press release statement from AECI.
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