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 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.
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.”