In a bourse filing today, the group said its indirect wholly-owned subsidiary Sime Darby Industrial Machinery Australasia Pty Ltd entered into a share sale agreement to buy Kuxton Pty Ltd and 98.9% of Kagera Pty Ltd’s share capital from vendors RRC Nominees Pty Ltd (ATF The Walkerville (1978) Trust), RRC Nominees Pty Ltd (ATF The Devonshire (1978) Trust), and Alistair Cavill.
Kagera is the holding company of a group of companies that operate Cavpower Group, the South Australian dealer of Cat industrial machines and vehicles, with nine branches throughout the region and seven parts stores, while Kuxton holds a 1.1% stake in the company. RRC Nominees Pty Ltd holds 98.8% of Kagera while Cavill owns the remaining 0.1%.
Cavpower Group, a privately-owned company headquartered in Adelaide, has a workforce exceeding 450 employees.
Sime Darby CEO Jeffri Salim Davidson said the acquisition complements its existing portfolio and positions its industrial division in high growth infrastructure and commodity areas of the Australian market.
The acquisition aligns with the division’s core business focus on the sale, aftersales, and rental of heavy equipment and industrial solutions, particularly within the mining and construction sectors.
“We are very pleased to have retained Cavpower’s strong management team and look forward to working with them to build on its leadership in the resources, infrastructure, and energy sectors,” he added.
Pending the fulfillment of final conditions, the acquisition is anticipated to be finalised in the coming weeks.
The sale is contingent on receiving the approval of the Australian Foreign Investment Review Board, the consent of the Australian Competition and Consumer Commission, and various third parties.
It is noteworthy that Sime Darby and Cavpower already have existing joint venture investments, a factor that is expected to bolster the former’s foothold in the Australian market.
In the fiscal year ending June 2022, Cavpower reported a profit after tax and minority interests of A$23.1 million (RM69.2 million).
Sime Darby’s shares closed one sen or 4.46% lower at RM2.16 today, giving it a market capitalisation of RM14.72 billion.