November 22, 2017 / 3:04 PM / a year ago

UPDATE 1-South Africa's Group Five to sell stake in pipe venture for $5.7 mln

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JOHANNESBURG, Nov 22 (Reuters) - South African construction firm Group Five said on Wednesday it would sell its half share in a steel pipe joint venture to LB Pipes Proprietary Ltd for 80 million rand ($5.76 million), as part of plans to shed non-core assets.

The firm said last month it had decided to sell its manufacturing arm - which includes the Group Five Pipe unit, a joint venture with Marine Civil Proprietary Ltd - because of a slump in its home market.

South Africa’s construction industry has slowed sharply since the building boom around the 2010 FIFA World Cup.

LB Pipes, itself partly owned by Marine Civil, would buy the 50-percent stake in the unit, which mostly makes large water pipes, for 80 million rand in cash, Group Five said.

Group Five added it would receive at least 25 million rand as its share of the cash available in the joint venture.

Another 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. ($1 = 13.8965 rand) (Reporting by Nqobile Dludla; Editing by Andrew Heavens)

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