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One of Wilson Bayly Holmes - Ovcon (WBHO) Australia’s subsidiaries will be saved after administrators Deloitte today announced SRG Global (ASX: SRG) had signed a sale agreement for WBHO Infrastructure Western Australia.
The deal, worth $15.2 million, will be completed tomorrow following a successful second meeting of the company’s creditors earlier today.
According to new owner SRG the Deed of Company Arrangement pertaining to WBHO Infrastructure WA was “overwhelmingly supported by creditors”.
“We are pleased to see our proposal get the support of creditors and look forward to integrating the WBHO Infrastructure WA business into our operations as seamlessly as possible, underpinning the ongoing employment of workforce at all levels, providing certainty for them as well as clients and suppliers,” SRG Global managing director David Macgeorge said.
Proceeds from the sale will be included in a fund established for the benefit of creditors which will facilitate a distribution to creditors at a later time.
“Achieving this sale at such speed, and to have it endorsed by creditors, is an excellent outcome in terms of jobs,” Deloitte turnaround & restructuring Western Australia leader and voluntary administrator Matt Donnelly said.
“Well-established in the industry, SRG Global has presented a compelling value proposition and, as the new owner of the business and assets, jobs are retained and suppliers and customers have certainty going forward.”
The deal was completed just over a month after WBHO Infrastructure WA’s South African parent company placed its Australian group of businesses into administration, including construction and project management giant Probuild and Monaco Hickey.
Having operated in WA for 35 years, WBHO Infrastructure has a number of long-term, blue-chip clients and currently services a range of sectors including transport, resources, water, agriculture, waste, renewables and aviation.
In addition, SRG says it has a “long and successful history of working together on several joint venture projects” with WBHO Infrastructure, including the Ocean Reef/Wanneroo Road Interchange in the northern suburbs of Perth.
When the proposal was announced in mid-March, Macgeorge said the acquisition would be complementary to SRG Global’s existing operations.
“We look forward to welcoming the WBHO Infrastructure WA team to SRG Global. This acquisition will ensure minimal disruption to WBHO Infrastructure’s WA business and its clients, while helping solve one of the biggest constraints to growth in the current economic environment,” Macgeorge said.
According to Deloitte, the sale of Probuild’s Victorian projects to Sydney-based Roberts Co is ongoing, with administrators close to finalising the in-principle agreement.
Shares in SRG Global are up 1.60 per cent to $0.64 per share at 3.13pm AEDT.
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