Macmahon divests stake in Qld accommodation facility
Macmahon Holdings boss Michael Finnegan says a new Queensland-based strategic partnership will deliver upside for the company moving forward.
Macmahon Holdings boss Michael Finnegan says a new Queensland-based strategic partnership will deliver upside for the company moving forward.
The ASX-listed contractor told investors on Monday it had filed documents to sell up to 50 per cent of its stake in the Homeground workforce accommodation village in Central Queensland to Allcap Securities, which owns a controlling stake in Inter-Port Global Consolidated Holdings, along with also entering into a strategic partnership with the firm.
Under the sale agreement transaction, Macmahon’s divestment will be based on Homeground’s $52 million book value.
Allcap will secure an initial 20 per cent stake in the facility, with an opportunity to attain the additional 30 per cent by the end of 2029.
As part of the strategic agreement, both Allcap and Macmahon have agreed to work cooperatively across various civil, workplace accommodation and infrastructure prospects within a 70km radius between Gladstone and Homeground – with Macmahon to be included within Allcap’s preferred panels where possible.
Macmahon is also confident Homeground – which presently has 1392 rooms – will also have a key role to play in IPG’s nearby Project Velocity, a prospective integrated freight, logistics and infrastructure development program, valued at $20 billion.
It is hoped Project Velocity will transform Gladstone, located 542km north of Brisbane, into a significant container and logistics hub.
“This strategic partnership with Allcap Securities provides Macmahon with an opportunity to progressively realise value from Homeground, which we have consistently regarded as a noncore asset, while retaining meaningful exposure to its future performance,” Mr Finnegan said.
“Importantly, the co-operation agreement also positions Macmahon to pursue civil infrastructure contracting opportunities associated with one of Australia’s largest regional infrastructure development projects, while simultaneously increasing utilisation of Homeground.
“We see this as a win-win – creating new opportunities for Macmahon and our shareholders while supporting significant investment, employment and economic activity in Gladstone and Central Queensland.”
As of 10am AWST, Macmahon shares were up 2 per cent to 99.3 cents.
