Farsands Corporation has re-listed on the Australian Stock Exchange following a major restructuring that was effectively a reverse takeover by project management group Clifton Coney.
The restructure has substantially boosted the scale of Farsands, which will have a market capitalisation of about $35 million.
Farsands originally listed on the ASX last year after the acquisition of risk management business MPL Group.
Shortly after listing the opportunity to merge with Clifton Coney was presented to the board.
Clifton Coney is currently managing or involved with projects with a combined capital value of more than $5 billion, and in the 2003 financial year achieved fee income of $16.9 million and a pre-tax profit of $2.6 million.
A merger agreement between Farsands and Clifton Coney was revised in March due to the strengthening of Clifton Coney’s business.
Its joint venture in Dubai was awarded the contract to provide project management services for the construction of the Dubai Mall, considered one of the largest retail developments in the world, covering 480,000 square meters of floor space, with an anticipated capital expenditure budget of approximately $1 billion.
As a consequence, the consideration for acquiring Clifton Coney was increased from 105 million shares to 112 million.
A total of 113 million shares was issued, in addition to the existing 23 million, giving the 31 Clifton Coney shareholders an 82 per cent interest.
Clifton Coney was formed in July 2000 when Clifton Project Management, which operated in Sydney and Melbourne, merged with Coney Stevens Project Management, which operated in Perth and Brisbane.
In a letter to shareholders, Farsands directors said Clifton Coney provided an excellent fit with the Farsands’ strategy of developing a national risk management solutions business.
Clifton Coney’s client base in WA includes the East Perth Redevelopment Authority, Midland Redevelopment Authority, Subiaco Redevelopment Authority, Edith Cowan University, St John of God Healthcare, AMP Capital Investors, Foodland Associated Limited.