3 bidders shortlisted for Devon Engineering

Published: 10 July 2014

The fate of Motec Holdings subsidiary, Deven Engineering, hangs in the balance as the group awaits confirmation of funds from the shortlisted bidders.

The Industrial Development Corporation (IDC) announced earlier this year that it had put the coach building, transport solutions and general engineering company - Deven Engineering - up for sale. The sale was part of Government's plans to restructure the IDC allowing greater focus on the revival of the country's struggling industry.

In an interview, Motec Holdings (Private) Limited group CEO Benjamin Khumalo said that the sale and direction of the group is dependent on the bidders' ability to provide undisputable proof that they have the funds available.

"It really depends on if they can give us irrevocable proof of funds or not. If they can't then it means we are back to the drawing table, so it's possible for us to re-turn and it's also possible that among the ones we have short listed somebody will be able to give us proof."

He added that currently the company is awaiting proof of funds from the bidders before proceeding with the sale.

"We are at that stage where we are now calling on the short listed bidders who will give us irrevocable proof of their ability to pay. Once we receive that then we then move on," he said.

Kumalo said although there are bidders who have been shortlisted the sale of the company cannot yet be confirmed.

"At this point and time I cannot say we are definitely going to sell to the short listed bidders or not," he said.

The names of the selected bidders could not be given, however, Khumalo said a total of three bidders have been identified.

"It is not proper to name names at this point and time because these things are confidential but we have short listed about three. We had several people who had put in bids but we have narrowed the list to three," said Khumalo.

The Motec Holdings subsidiary is up for sale as the company seeks to mobilise capital to enable its parent company, the IDC, to effectively execute its re-defined role of financial mediation.
- BH24