Sime Darby picks up 70pct stake in Australian firm TFP Engineering in A$3.2M cash deal
Malaysian conglomerate Sime Darby Bhd is taking hold of a 70% stake in Australian mining machinery provider TFP Engineering. The purchase deal is valued at A$3.2 million (MYR9.5 million), according to The Star Online.
The New Straits Times reports that the transaction was done through Haynes Mechanical, an indirect subsidiary of Sime Darby. The report added that the said stake previously belonged to Gaylene Elaine Poke and Tony Francis Poke.
Sime Darby said in its filing to Bursa Malaysia: "The acquisition will enable Haynes to expand its labour hire opportunities from its existing geographical presence in Queensland and Western Australia to the New South Wales coal basin, Tasmania and South Australia."
Under the terms of the acquisition deal, Haynes also has a call option to purchase the remaining 30% of TFP. The call option can be exercised between December 1, 2015 and December 31, 2015. The purchase price for this stake is pegged at A$1.8 million (MYR5.3 million), the report detailed.