SGX-listed Australian oil & gas construction, maintenance and fabrication firm AusGroup has appointed Macquarie Capital to undertake a process to solicit and consider offers for the company’s scaffolding and access business (MAS).
MAS has operations throughout Australia, Singapore and Thailand, providing scaffolding and associated services for both construction and maintenance activities on major projects in the resources, oil and gas, infrastructure and industrial sectors.
AusGroup says no decision has been made whether to proceed with a disposal of MAS, however in light of the expressions of interest received by the company, it is in AusGroup’s best interests to consider whether a sale can be agreed on terms which can be recommended by the board.
Additionally, the company also announced today that Paul Birighitti, executive general manager of maintenance services, has resigned while both Mark Johns and Michael Nesbitt have moved to project based roles. Johns was group manager HSSQ and while Nesbitt was executive general manager projects.
AusGroup has appointed James Stokes to the engineering services business as executive general manager operations, and says the restructure will save the company over A$15m annually.
Earlier this week Gerard Hutchinson resigned from his role of managing director after just nine months in the role, replaced by Eng Chiaw Koon. Eng is the director of special projects at Ezion Group, who are major shareholders of AusGroup.
Seems strange that AusGroup appears to be selling the profitable unit of the business. Is it not the marine business which is the drain and well outside their expertise?
Maybe questions will now be asked about their acquisition policy and the rational behind the EZION acquisitions.