SINGAPORE (Feb 19): AusGroup, the construction and marine services provider, is acquiring an accommodation village plus facilities worth A$11.8 million ($11.4 million).
The village comprises a 119-man accommodation camp, kitchen, administration building and recreational facilities at Port Melville, Melville Island in the Northern Territory of Australia, supporting the Northern Territory oil and gas industry and marine transport industry.
The acquisition will be made in cash, and comes without mortgage or security interests.
AusGroup’s unit, NT Port and Marine, on Monday signed a general deed of settlement and release with Charisma Energy Services (CES), Aus Am and Kingpost 2 International, which hold the legal title and interests in the accommodation village and ancillary facilities.
Under the terms of the agreement, these will be transferred to NT Port and Marine.
The consideration also accounts for the global settlement of obligations between a related party of CES and the group, the restructuring of the shareholder’s loan from a related party of CES to the group, resolution of obligations relating to the village between the sellers, and the valuation of the village.
In a Tuesday announcement, AusGroup said the deal is part of a long-term corporate strategy to better position the group for sustainable growth across diverse economic conditions.
"The board is of the view that the proposed transfer of title, if completed, could potentially lead to strategic divestment plans for Port Melville and improving the group’s financial performance and position over a longer term,” says the group.
Among other things, CES and Aus Am are required to obtain approval from the financier of the village by May 15, 2109, before the settlement deed can proceed.
Shares of AusGroup closed on Monday at 3.5 cents.