Watpac: Belgians buy in
Mr Seymour has been a Watpac board member since 1996, eight years as chairman - retiring from that position last July - and will leave the company in September.
In a recent interview, he said he was "72 this year and I think that everyone should realise at a certain age they should be prepared to relinquish the reins".
Mr Seymour is worth about $550 million, according to the latest BRW Rich List, making him one of the richest men in Queensland.
Chris Freeman, who succeeded Mr Seymour as chairman, said the agreement with Besix was subject to approval from the Foreign Investment Review Board and was scheduled to settle within the next 30 days. Analysts said the deal was positive for Watpac.
Watpac is involved in about $1.4 billion of work in projects across the country. The projects include the Rue de Chapel, Prahran, and the Melbourne Park Redevelopment Eastern Plaza.
It is also in a joint venture at Port Macquarie with construction group National Buildplan, which went into administration on Monday.
In the half-year to December 31, Watpac reported a net profit of $1.3 million, which was affected by $4.4 million in net post-tax asset impairments associated with four property holdings, and no dividend was declared.
Mr Freeman said the group's focus was now on generating returns for shareholders in the form of restoring the business well enough to generate a dividend.
"We are on the way to recalibrating Watpac to increase shareholder value and this strategic deal with Besix is a good fit to help with this outcome," Mr Freeman said.
Besix Group is one of the world's largest privately owned construction groups, operating in 17 countries.
Frequently Asked Questions about this Article…
Kevin Seymour agreed to sell his 15.6% stake in listed Queensland developer Watpac to Belgium’s Besix Group. Seymour has been a Watpac board member since 1996, served eight years as chairman and will leave the company in September. For investors, a major shareholder change like this can shift board influence and signal fresh strategic direction for the company.
Besix Group is one of the world’s largest privately owned construction groups, operating in 17 countries. Analysts and Watpac’s chairman view the deal as positive — Besix’s global construction expertise and backing are seen as a strategic fit that could help Watpac recalibrate and boost shareholder value.
The agreement to sell Seymour’s 15.6% stake is subject to approval from the Foreign Investment Review Board (FIRB) and was scheduled to settle within the next 30 days, according to Watpac’s chairman. Until FIRB approval and settlement occur, the sale is not final.
Watpac’s chairman, Chris Freeman, said the group is focused on restoring the business to generate a dividend and increase shareholder value. He described the Besix deal as a good strategic fit to help achieve those outcomes, so investors might see improved dividend prospects if the partnership helps stabilise the business and returns.
Watpac is involved in about $1.4 billion of work on projects across Australia. Notable projects mentioned include the Rue de Chapel in Prahran and the Melbourne Park Redevelopment Eastern Plaza. Investors should note the company’s significant project exposure as part of its revenue base.
In the half-year to December 31, Watpac reported a net profit of $1.3 million. That result was affected by $4.4 million in net post-tax asset impairments related to four property holdings, and the company did not declare a dividend for the period.
National Buildplan, a construction group, went into administration. Watpac was in a joint venture with National Buildplan at Port Macquarie, so investors should be aware there may be project or contractual implications from National Buildplan’s administration for that joint venture.
Chris Freeman succeeded Kevin Seymour as Watpac chairman. He has said the group is focused on recalibrating the business to increase shareholder value, restore the business strength needed to generate dividends, and that the strategic deal with Besix is expected to support those goals.
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