SYDNEY: HGL Limited has signed a binding Heads of Agreement for the sale of a 50% share in its JSB Lighting business to FOS Lighting Pty Ltd, a news release said.
The transaction remains subject to approval of HGL’s lender ANZ, expected shortly. FOS Lighting is an Australian manufacturer of commercial and industrial lighting products with manufacturing facilities in Brisbane and sales offices in Melbourne and Adelaide, headed by experienced lighting executives Con Scrinis and Michael Koutsakis.
HGL will receive 3 million ordinary shares (representing 9.1% of issued capital) in FOS Lighting’s parent company, FOS Capital Limited, as consideration for the sale of 50% of JSB Lighting.
HGL will grant FOS Lighting an option to acquire the balance 50% of its shares in JSB Lighting for Net Tangible Asset value at the point of exercise of the option. HGL Chairman Sandy Beard will be appointed a Director of FOS Capital Ltd.HGL has also undertaken to sub-underwrite $500K in new shares in FOS Capital Limited as part of any future initial public offering on the Australian Securities Exchange (ASX).
Chairman of HGL Sandy Beard said, “We are excited by the tie-up of JSB with FOS as the transaction is expected to provide material synergies and scale to the two businesses to be able to compete more successfully in the commercial lighting market.”
HGL is an investment company which invests in small to medium size businesses with a sustainable competitive advantage and strong growth prospects, providing them with specialist business management skills and equity capital to leverage these growth opportunities. Our core purpose is to create shareholder value through active long-term ownership in our portfolio businesses, driving sustainable growth through a strong focus on customers and employees. www.hgl.com.au