Aveng : UPDATED PRO FORMA FINANCIAL INFORMATION OF THE AVENG GROUP

UPDATED PRO FORMA FINANCIAL INFORMATION OF THE AVENG GROUP

Aveng shareholders ('Shareholders') are referred to the announcement dated 27 February 2017 advising that the Company had posted a circular to Shareholders ('Grinaker-LTA Circular', 'Circular'). The purpose of the Circular was to provide Shareholders with information relating to the proposed disposal of a 51% beneficial interest in the Grinaker-LTA business, owned and operated by Aveng Africa Proprietary Limited, to Kutana Construction Proprietary Limited ('Kutana Construction') and the subsequent issue of the non-voting equity instrument by Kutana Construction to Aveng Africa resulting in Aveng disposing of an effective 45% economic interest in the Grinaker-LTA business to Kutana Construction ('Disposal'). The purpose of the Circular was to provide information to enable Aveng shareholders to make an informed decision in respect of the relevant resolutions contained in the Circular and to convene a general meeting at which shareholders will be requested to vote on the resolutions to approve the Disposal.
Following the announcement of the Group's interim financial results for the six months ended 31 December 2016, Aveng is required to update the pro forma financial information contained in the Circular using the most recently published financial results. Updated pro forma financial information is now provided for the six months ended 31 December 2016 below and should be considered in conjunction with the details included in the previously published Circulars.

Basis of preparation

The pro forma financial Information has been prepared to provide details of how the Steeledale, ACP and Grinaker-LTA Transactions, might affect the financial position and results of operations of the Aveng Group for the six month period ended 31 December 2016. The pro forma financial information is based on the interim results of Aveng for the six month period ended 31 December 2016, adjusted for the pro forma financial effects of the Steeledale Transaction, cumulatively the Steeledale and ACP Transactions and cumulatively the Steeledale, ACP and Grinaker-LTA Transactions. The details of the Steeledale and ACP Transactions are included in the relevant circulars to shareholders dated Wednesday, 12 October 2016 while the details of the Grinaker-LTA Transaction is included in the Circular dated Monday, 27 February 2017. The pro forma financial effects are provided for illustrative purposes only.

The Directors are responsible for the preparation of the pro forma financial information. The pro forma statement of financial position of the Aveng Group at 31 December 2016 has been prepared on the assumption that each of the Steeledale Transaction, ACP Transaction and Grinaker-LTA Transaction, was effected on 31 December 2016. The pro forma statement of comprehensive earnings has been prepared on the assumption that each of the Steeledale Transaction, ACP Transaction and Grinaker-LTA Transaction was effected on 1 July 2016.

Because of its nature, the pro forma financial information may not fairly present the Aveng Group's statement of financial position and results of operations after each of the Steeledale Transaction, ACP Transaction and Grinaker-LTA Transaction. The pro forma financial information has been prepared in accordance with the Group's accounting policies and the revised SAICA Guide on Pro forma Financial Information.

The pro forma financial information, as set out below, should be read in conjunction with the circulars to Aveng Shareholders relating to the Steeledale, ACP and Grinaker-LTA Transactions. A copy of the reporting accountant's report on these pro forma financial effects can be obtained from the company's registered office.

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