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.
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