SYDNEY, AUSTRALIA: Ava Risk Group Limited has completed the sale of its non-core Services Division, Ava Global DMCC-LLC to TTG Bidco Limited, an entity backed by funds advised by Phoenix Equity Partners Limited.
Sale price includes US$46.4 million (A$62.6 million) with anticipated net cash proceeds of US$31.1 million (A$41.9 million) after closing adjustments, and payment of management incentives and FY2021 accrued bonuses.
Ava Risk Group CEO Rob Broomfield said: “We are pleased to finalise the sale of Ava Global, and wish the new owners and their management team all the very best.
Management is now fully focused on our world leading Technology Division which is experiencing solid growth as we continue to build on the momentum of Q4 FY21. With a growing pipeline of sales opportunities and orders received, we are well positioned for growth in current and future years.”
As announced on 30 August 2021, following the completion of the Transaction Ava Risk Group is expected to hold $40.2 million in excess capital.
The Board’s intention is to use the excess capital to undertake the following capital management strategies:
- Capital Return to Shareholders: $39.7 million (circa 16 cents per share); and
- On-Market Buy Back: $1.0 million, which has commenced.
The proposed capital return is subject to the Company obtaining a favourable Class Ruling from the Australian Taxation Office (“ATO”) in respect of the classification of the proposed capital return and obtaining shareholder approval.
Ava Risk Group is a global leader in providing technologies and services to protect critical assets and infrastructure.
Its Technology Division manufactures and markets ‘smart’ fibre optic sensing systems (Future Fibre Technologies) and high security access control and electronic locking products (BQT Solutions.