Global Construction Services divests scaffolding business

Company News

by Jessica Ellerm


Global Construction Services Limited (ASX:GCS) has announced it will sell its 50 percent interest in SmartScaff Pty Ltd for $10.5 million in cash.

SmartScaff is a specialist scaffolding hire and sales company operating on the east coast of Australia.

GCS has signed a binding agreement to sell its stake to the remaining shareholders in SmartScaff and will also receive an additional $7 million from the company to repay an outstanding loan.

GCS Managing Director Enzo Gullotti indicated the decision to sell the company will resolve differing shareholder views on the strategic direction of the scaffolding business.

Global Construction Services Limited reported a net loss of $76.9 million at 30 June 2016.
 

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