07/10/2019 - 15:52

Oxley takes control of underperforming Pindan

07/10/2019 - 15:52

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Singaporean development group Oxley Holdings has moved to full ownership of Pindan for zero cost, after cancelling around $24 million in debt while also disclosing that the local contractor had failed to meet performance targets.

George Allingame is retiring after 42 years at the helm of Pindan. Photo: Attila Csaszar

Singaporean development group Oxley Holdings has moved to full ownership of Pindan for zero cost, after cancelling around $24 million in debt while also disclosing that the local contractor had failed to meet performance targets.

Oxley today announced to the Singapore Stock Exchange that it had acquired around 45 million shares from three unnamed directors of Pindan for nil consideration, as settlement for the local contractor failing to meet performance targets.

In conjunction with that acquisition, Oxley bought back and cancelled more than 46 million shares from two of its shareholders, in settlement of a $24.3 million debt.

Australian Securities and Investments Commission documents show that prior to the transactions announced by Oxley, around 46 million of Pindan Group's shares were owned by a pair of entities – Pindan Pty Ltd and Pindan Nominees Pty Ltd.

Both of those companies are owned jointly by co-founders George Allingame and David Pringle, ASIC records show.

Mr Allingame and Mr Pringle have announced their retirement after 42 years at the helm of the contractor, with the company to be led going forward by Scott Davison.

Following the deals, Oxley Holdings holds all 106.8 million shares in Pindan, with the transactions adding to the 40 per cent stake that it acquired in late 2016 for $32 million.

The rationale behind the 2016 transaction was to give Pindan the required financial strength to underpin a national expansion.

The acquisition by Oxley follows Messrs Allingame and Pringle last year selling off several properties to pay subcontractors after the company ran into issues building the Eastern Goldfields Regional Prison in a joint venture with John Holland.

Notwithstanding those issues, Mr Davison described the acquisition as significantly positive for the company.

“We have a very strong construction order book and a positive outlook for the future and look forward to continuing to work with our valued clients and subcontractors,” Mr Davison said.

Oxley’s SGX statement indicated Pindan Group had a net tangible asset value of $25.8 million, based on its unaudited financial statements as at June 30.

Pindan was ranked as Western Australia’s third-biggest construction company in the 2019 BNiQ construction companies list, while its revenue was $318.6 million in the 2017-18 financial year, ASIC records show.

It commenced construction of 500 dwellings in 2018-19, according to BNiQ.

“We are pleased to acquire full ownership of Pindan Group, an experienced and key player in the Australian property and construction market, as a way of continuing to support its growth alongside ours for the benefit of the community,” Oxley chairman Ching Chiat Kwong said.

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