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aiConstruction makes deal $9m with Cimeco Group

BIBRA Lake’s aiConstruction, the building arm of listed Perth company aiLimited, will acquire Bunbury-based construction company Cimeco Group Pty Ltd in a deal worth up to $9 million. The move is yet another sale of a private company, adding to around $100 million in similar transactions in recent weeks, as reported in last week’s WA Business News. The purchase consideration will be the issue of 20 million shares, or 12 per cent, in aiLimited to Cimeco vendors, to be placed under a two-year escrow, as well as an earn out component, which will allow vendors to earn up to $2 million payable if profit targets are met. aiLimited shares were trading this week at 35 cents, making the sale worth up to $9 million. Cimeco was spun-out of defunct Bunbury construction company Devaugh Pty Ltd, which went into administration with 100 employees and debts of $14 million. After an $8 million investment from businessman Andrew Ellison, Cimeco went on to earn $40 million in revenue in the 2005-2006 financial year, and is expected to earn a pre-tax profit of $2.5 million. Mr Ellison was previously the general manager of aiMaintenance Ltd, a 50 per cent-owned subsidiary of aiLimited. In May, aiLimited announced a $2.3 million investment in Perth based natural gas fuel company Motive Energy Pty Ltd for an initial 36 per cent stake.

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