AusGroup Inks Sale, Leaseback Deal for Singapore Facilities

Australia's AusGroup Limited, an integrated services provider to the oil and gas and resources sectors, announced that it has sold its fabrication facilities in Singapore.

AusGroup will leaseback the facilities under the deal and there will be no disruption to the company's day-to-day operations. The agreement is subject to completion of certain conditions, including Jurong Town Corporation approval, when it becomes a binding contract for the sale and purchase of the facilities. Completion of the sale is expected to be in early September 2013.

AusGroup said the $30.5 million (AUD 33 million) sale price for the facilities property is above its net book value and the company will make an estimated profit of $13.4 million (AUD 14.5 million). Net proceeds from the proposed sale will be deployed to reduce its bank borrowings, to facilitate other corporate funding requirements and for general working capital requirements.

“The sale of this property will allow AusGroup to continue investing in the growth of the business, while ensuring we are committed to our current and ongoing projects in Singapore,” AusGroup CEO and Managing Director Laurie Barlow said in an announcement on the Singapore Exchange.

AusGroup's unit AusGroup Singapore provides subcontract services to the oilfield equipment manufacturing companies in Southeast Asia through its fabrication and machining facility in Singapore.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Serinus Shuts-In Sabria Field Due to S... (May 23)
 -  Proserv Secures Series of Services Dea... (May 23)
 -  BP Urges Engineers to Apply for Trinid... (May 23)
 -  CGG to Support Oman Industry Workers t... (May 23)
 -  Wood Group Engineers to Carry Out Sakh... (May 22)


Most Popular Articles

From the Career Center
Jobs that may interest you
Construction Contracts Analyst
Expertise: Contracts Administration|Legal
Location: Alpharetta, GA
 
Senior Construction Contracts Manager
Expertise: Construction Manager|Legal
Location: Alpharetta, GA
 
Asset Analyst
Expertise: Accounting|Asset Management|Financial Analyst
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours