07/04/2015 - 13:20

OTOC to buy Brisbane surveyor for $4m

07/04/2015 - 13:20

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Osborne Park-based contractor Otoc is continuing its east coast expansion plans with a proposal to buy a Queensland surveying and planning firm for a cash and share package worth up to $4.4 million.

OTOC to buy Brisbane surveyor for $4m
OTOC chief executive Simon Thomas.

Osborne Park-based contractor Otoc is continuing its east coast expansion plans with a proposal to buy a Queensland surveying and planning firm for a cash and share package worth up to $4.4 million.

Under the terms of the deal, Otoc will pay $2.2 million in cash and $400,000 in shares for the acquisition of THG, followed by payments once certain milestones have been achieved.

In a statement, Otoc said the acquisition was in line with its plan to build a national premium surveying business, providing it with an entry into the Queensland market.

It follows Otoc’s $17 million acquisition of Victorian firm Bosco Jonson in September last year, and its acquisition of Sydney-based Geo-Metric Surveying for about $12 million in December.

Chief executive Simon Thomas said the acquisition would establish a strong foothold for Otoc in Queensland with THG’s market leading position in land and cadastral surveying.

“We were attracted to THG by its premium and longstanding brand, proven management team, valuable expertise in land and cadastral surveying, blue-chip clients, and unique market presence in the key growth corridors of Queensland,” Mr Thomas said.

“We believe the addition of THG will strongly enhance our ability to develop an integrated product for national property developers, thereby delivering an enhanced service for our clients, greater opportunities for our employees and stronger financial returns for the group.”

Otoc said it would continue to search for acquisition targets that aligned with its objectives of enhancing the group’s geographical reach, product capability, and earnings profile.

The deal is subject to a number of conditions, including at least 90 per cent of THG employees accepting offers of employment.

THG’s clients include property developers Peet, Villa World, Investa, Devine, and government agencies.

It has about 49 staff.

GMP Securities is acting as financial adviser and Steinepreis Paganin as legal adviser to Otoc.

Otoc shares were up 8.7 per cent to 8.7 cents per share at 1:15pm.

 

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