The Board of BGC is pleased to announce its decision to commence the share sale of the BGC Group.
In May 2018, the Board announced it would undertake an orderly divestment of the Group, in order to give effect to the amendments to the Will of the late Len Buckeridge, as agreed by the beneficiaries of his estate.
The decision to formally commence the sale process now follows BGC’s transformation into a building materials and construction focused business. It also reflects favourable market conditions, strong demand for our products and large pipeline of work.
BGC Chief Executive Officer Daniel Cooper said the Group had successfully delivered on its strategy to improve BGC’s integrated set of core businesses and refine its operating model.
“We divested non-core assets, like BGC Contracting, The Westin and Aloft hotels, apartment blocks, surplus landholdings and closed underperforming business units,” Mr Cooper said.
“We have strengthened our balance sheet and invested significantly in our core business in the lead up to this decision.
“For example, a year ago we acquired Midland Brick and this business is now well integrated within our portfolio. We also consolidated our housing brands, moving to a single housing group with a recently opened state-of-the-art showroom and a new Perth office. Each of BGC’s sixteen businesses have been transformed and are now safer, more efficient and customer focussed.
“Collectively, these improvements have really strengthened our vertically integrated operating model and we are in great shape.”
Despite dealing with the challenges of the past two years, borders are opening up and restrictions are easing, net migration is up and the demand for housing continues to grow.
These factors all drive a positive economic outlook, making it the right time for BGC to commence the sale of the whole of the Group.
A transaction of this scale is anticipated to take 6 to 12 months to complete. BGC has appointed Macquarie Capital to advise on the sale process and engage with potential buyers.
Mr Cooper said it would be business as usual for BGC’s people and customers while the sale process was conducted, and the Board would continue to execute its strategy to further strengthen the business.
“We need to safeguard the value of the business, so we can attract the best possible new shareholders to continue our successful operations and under new ownership, drive further innovation and growth opportunities,” he said.