Maas shares tank 16% after $1.7b construction sale, Firmus investment
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More news: Shares in Maas Group Holdings plunged in morning trade after the industrials and real estate business announced it would sell its construction materials division for up to $1.7 billion and make a $100 million equity investment in data centre Firmus.
At 10:54am AEDT, shares in Maas had fallen 17.9% to $4.60, wiping nearly $360 million in market capitalisation.
Maas Group makes $100m equity investment in Firmus
More news: Maas Group has made a $100 million strategic equity investment in data centre business Firmus, which takes the total capital raised by the AI company over the past six months to $800 million.
Firmus said over the last six months it has committed $300 million to support its “Australian AI factory supply chain, including long-term partnerships with Benmax (mechanical systems) and Maas subsidiary JLE (electrical and electrification systems)”.
Through these partnerships Firmus said it has "established sovereign Australian manufacturing capacity for the core components required to build AI facilities, including cooling, power and integrated system modules”.
Maas told investors that its roughly 1.7% equity is “more than a financial investment” and supports closer alignment between Maas and Firmus. It also represents Maas’ “intention to develop a longer-term relationship beyond a single project, where appropriate” and gives the company exposure to “a growing digital infrastructure platform”.
On Thursday morning, Maas announced it would sell its construction materials division for up to $1.7 billion to deepen its focus on “the next phase of infrastructure investment” with a focus on digital infrastructure.
What they said: “We work closely with global technology partners to define the performance, cooling and energy requirements of AI infrastructure from the ground up,” Firmus co-CEO Tim Rosenfield said.
“Those designs are then manufactured and delivered through Australian industrial partnerships such as Maas and Benmas, who build the physical systems at scale.”
Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton said: “By building advanced manufacturing capability here in Australia and supporting delivery of digital infrastructure, projects like this strengthen our industrial base, create skilled jobs and position Australia to compete in the global economy.”
“These investments are a positive step towards building Australia’s own supply chain to support the growth of AI through homegrown engineering innovation.”
Maas Group to sell construction materials unit to Heidelberg Materials Australia for $1.7b
The news: Industrials and real estate business Maas Group Holdings has entered a share sale deed to sell its Construction Materials division to Heidelberg Materials Australia for cash consideration of up to $1.7 billion.
The numbers: The $1.703 billion cash consideration includes a $120 million contingent cash consideration upon the achievement of agreed post-completion operational and commercial milestones.
The context: Some freehold land will be retained by Maas and leased to Heidelberg under long-term commercial lease arrangements. About 1,140 employees will transfer with the construction materials business to Heidelberg.
The deal is expected to be complete in the second half of 2026 subject to Australian Competition and Consumer Commission approval, Foreign Investment Review Board approval and MGH shareholder approval.
Maas said the deal “represents a valuation premium to MGH’s current trading multiple and is above relevant comparable transactions in the construction materials sector”.
What they said: “This transaction allows MGH to crystallise value from a high-quality asset while positioning the Group toward the next phase of infrastructure investment – including digital infrastructure, electrification and AI-enabled assets” CEO and managing director Wes Maas said.
“The sale enables a strategic re-focus and disciplined redeployment of capital into areas where we see strong structural tailwinds.”
Maas chair Stephen Bizzell said: “Proceeds will strengthen the balance sheet, reduce net debt, enhance financial flexibility, and allow the Group to redeploy capital into growth opportunities, including digital infrastructure, electrification and energy-transition-related assets”.
“This includes potential capital returns to shareholders, subject to final proceeds, tax outcomes and the capital needs of the post-transaction business,” Bizzell said.
