AusGroup seeks trading halt ahead of planned acquisitions

AUSGROUP sought an immediate halt in the trading of its shares on Friday, pending a release.

The company said the release will be related to the planned acquisition of all of Ezion Offshore Logistics Hub Pte Ltd and a 90 per cent stake in Teras Australia Pty Ltd.

AusGroup is a solutions provider for fabrication, construction and integrated services for oil & gas, mineral resources and infrastructure development. It signed a sale and purchase agreement in July to buy from Ezion Holdings 100 per cent of Ezion Offshore Logistics Hub Pte Ltd and 90 per cent of Teras Australia Pty Ltd for S$55 million.

Ezion Offshore Logistics Hub will operate a port and marine supply base out of Melville Island, which is part of the Tiwi Islands, 80 km to the north of Darwin, capital to Northern Territory, Australia.

The remaining 10 per cent of Teras Australia will be held by Aboriginal Maritime Pty Ltd.

The acquisition targets are start-up companies with a combined net loss before tax of S$7.2 million for the year to June 30, 2014.

The purchase consideration of S$55 million will be satisfied by S$14 million in cash and the issue of 92.16 million new AusGroup shares at 44.49 Singapore cents each. The consideration shares represent 12.4 per cent of AusGroup's enlarged share capital post acquisition.