JOHANNESBURG, Nov 22 (Reuters) - South African construction firm Group Five said on Wednesday it will sell a 50 percent stake in its steel pipe business for 80 million rand ($5.76 million) to LB Pipes Proprietary Ltd, as part of plans to exit non-core assets.
Group Five announced on Nov. 7 that it will sell its manufacturing arm and exit some construction businesses as part of a further restructuring to address a slump in its home market.
South Africa’s construction industry has slowed sharply since the 2010 FIFA World Cup, with few major infrastructure projects awarded and those that have been approved risk being curtailed by fiscal strains.
However, a deal to sell Group Five’s Investments and Concessions business to Greenbay Properties, for 1.6 billion rand ($112 million) collapsed in October.
Group Five said then that the business would be restructured into separate stand-alone clusters and that the board continued to assess various expressions of interest received for it.
$1 = 13.8965 rand Reporting by Nqobile Dludla, editing by Louise Heavens