08/05/2013 - 14:42

AusGroup moves towards ASX listing with $167m deal

08/05/2013 - 14:42

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AusGroup moves towards ASX listing with $167m deal

Singapore-listed resources construction services firm AusGroup has made a key step towards listing on the ASX, signing a conditional agreement to acquire two Malaysian resort development companies for $S210 million ($167 million).

The acquisition will facilitate AusGroup rolling all of its subsidiaries into one entity, AGC Australia, which will be listed on the ASX.

AusGroup said it would issue new shares in its Singapore-listed entity, AusGroup Limited, to satisfy the purchase consideration.

The new shares would represent an 80.15 per cent stake in the Singapore-listed company.

The Malaysian firms, Kebun Sedenak Sdn Bhd and Tropik Sentosa Sdn Bhd, develop, manage, and operate resort homes, condominiums, and hotels, as well as commercial and residential developments.

They also collectively own a 1,015 acre freehold site in Malaysia’s Sedenak area, and plan to develop a golf course resort, with an 18-hole course to be designed by golfing great Jack Nicklaus, and a 9-hole course designed by Arnold Palmer.

Following completion of the proposed acquisition, the Malaysian firms would hold the right to change the Singapore-listed company’s name to reflect its new ownership structure and business.

AusGroup said the acquisition was a key step in its efforts to roll its subsidiaries into a single entity headed by AGC Australia.

Alongside AGC Australia, AusGroup’s subsidiaries include AGC Industries, AusGroup Singapore, MAS Singapore and MAS Australasia, as well as Austco.

AusGroup began the search in September for a suitable asset to enable a reverse takeover so the Singapore-listed AusGroup Limited could remain on the SGX.

Once the acquisition is completed, AGC Australia would be listed on the ASX, and would continue to pursue fabrication, construction and services opportunities in the mining and oil and gas sectors.

“By entering into the sale and purchase agreement, we have taken an important step in achieving our objective of being listed on the ASX,” AusGroup chief executive Laurie Barlow said.

“We are confident that by pursuing the ASX listing we will be well-placed to ultimately deliver greater value for shareholders.”

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