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Highlights:
- Maas Group’s board of director have approved a share buy-back program of up to 10% of issued share capital.
- Recently, the group has completed the acquisition of Dandy Premix.
- Mass Group will proceed with the proposed acquisition of commercial development site.
Australian construction material provider, Maas Group Holdings Limited (ASX:MGH) has been garnering significant investors’ attention recently as it announced a share buyback program of around 10% of the company’s ordinary share capital. Also, the company has recently shared an update on the Dandy Premix acquisition.
Shares of Maas Group were spotted trading 1.93% higher at AU$2.64 per share at 12:44 PM AEDT with a market capitalisation of AU$805.20 million. With this, in the last five trading sessions, the share price has surged by 2.72% and by 9.09% in a month. In one year, the share price has dropped by 45.90%, and on a year-to-date basis, it has fallen by 48.84%.
Proposed share buyback by Maas, details here
Today (20 December 2022), Maas Group shared that its board of directors have given a green signal to the on-market share buyback of around 10% of the company’s share capital in the coming 12 months.
The group informed the market that the share buyback program would be subject to conditions imposed by the Australian Banking Group. The Australian Banking Group have given the credit approval to Maas to undertake a share buyback.
Details of the acquisition of Dandy Premix
According to ASX announcement, on 16 December 2022, the company has completed the acquisition of Dancy Premix. Dandy Premix is an integrated construction materials business which operates five concentrate plants, a hard rock quarry and a sand quarry.
The consideration for the acquisition was AU$85 million. It comprises AU$76.5 million in cash and the rest by the issue of 3,331,533 shares.
In addition to this, the company shared that it would proceed with the proposed acquisition of a commercial development site in New South Wales for around AU$21 million. Also, the company will not proceed with the acquisition of the development, manufacturing and commercial construction business.
How did Maas perform in FY22?
During the financial year 2022, the company met the top end of its guidance via complementary acquisitions and organic growth, said Maas Group. In 12 months, the proforma revenue grew by 90% over the previous year, and the proforma EBITDA increased by 65%. Statutory NPAT surged by 78%, statutory EBITDA by 78% and total tangible assets by 87%.
In FY23, the company expects to deliver proforma EBIT of AU$150 to 180 million and 20 to 40% growth in EBITDA.
