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Ausgroup plans to divest property for A$16.2 million

Goola Warden
Goola Warden6/17/2022 06:49 PM GMT+08  • 1 min read
Ausgroup plans to divest property for A$16.2 million
Ausgroup plans to divest property at $16.2 million or 25.5% of its market cap
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Ausgrouup has agreed to sell a property in Westerm Australia to a third party for A$16.2 million ($15.7 million) in a sale-and-leaseback. After deducting transaction-related expenses of approximately A$200,000, the sale will provide the Group with A$13.4 million to bolster working capital and assist with debt management. The remaining A$2.6 million cash will be utilised for bank guarantees relating to the lease.

The monies will help in the company’s debt management, in particular for the multi-currency notes which are due on Dec 3, 2022. The cash injection will also reduce interest obligations.

The sale price is a significant portion of Ausgroup’s market capitalisation of A$63.4 million, and its net asset value of A$42.2 million.

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