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Highlights
- Robert co, a Sydney-based builder, intends to buy the Victorian assets of the Probuild.
- With the completion of transaction, Robert Co would get a considerable exposure to the Victorian infrastructure and construction market.
- Wilson Bayly Holmes - Ovcon Limited Infrastructure diversified engineering and infrastructure business sale process is advancing well.
Robert co, a Sydney-based builder, shows interest in taking over the Victorian assets of the collapsed Australian construction giant, Probuild. Administrators Deloitte informed the market that the sale of the Probuild’s Victorian assets to Robert Co is based on due diligence, which is expected to be completed in the next two weeks. Moreover, the deal with Robert Co would incorporate ongoing employment for the relevant Probuild workers.
Probuild, 88% owned by Johannesburg-listed Wilson Bayly Holmes-Ovcon (WBHO), is likely to go into administration as the company is in massive debt after making immense losses in projects around the country.
The news is followed by the administration of Probuild by its South-African parent company, Wilson Bayly Holmes - Ovocon Limited (WBHO), last month, leaving many Australian construction projects in limbo. Probuild also owes millions of dollars to its employees and creditors.
Related reading: Why construction firm Probuild might go into administration
A few days ago, Deloitte administrators said that it hopes to restart a few projects in the coming weeks to make the business attractive for potential buyers.
Image source: © Guarant | Megapixl.com
Why Robert Co wants to buy assets of an embattled company?
If the transaction takes place, then Robert Co, which was founded in 2017 by Andrew Roberts, would get a considerable exposure to the Victorian infrastructure and construction market. Alison Mirams, Co-chief executive of Rober Co, said in a statement,
A little gaze on the future plan was provided by Mirams as she added that Robert Co will aim at regaining the trust of the staff, contractors, sub-contractors and clients.
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Deloitte comments on the takeover of Victorian assets by Robert Co
Sal Algeri, Deloitte’s administrator, said that it is an exceptional outcome that a potential buyer is ready to undertake due diligence in less than a month.
The administrator also stated that Robert Co would make significant contribution because of its experience in large projects and its record with few Probuild executives.
What update has Deloitte provided on the Probuild administration?
Wilson Bayly Holmes - Ovcon Limited Infrastructure diversified engineering and infrastructure business (in Western Australia) sale process is advancing well, and the offers are due by March 11, 2021.
In addition to this, Deloitte showed optimism that work at a few Probuild construction projects would begin as soon as arrangements are agreed with Probuild clients.
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