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- Stream (SGO) has entered a share purchase agreement to buy Mayfield Group Investments for $25 million
- The purchase price represents a multiple of 6.2 times of Mayfield’s net profit after tax for the 2019 financial year
- Stream will pay for Mayfield through the issue of new shares
- However for the deal is subject to shareholder approval, which is expected to be held in mid-August
- If approved, Stream is expecting the deal to be finalised in early September
- On the market today, Stream went into voluntary suspension and was last trading for 2.2 cents each
Stream (SGO) has entered a conditional share purchase agreement to buy Mayfield Group Investments for $25 million.
Mayfield is a specialist engineering group of companies that supply electrical products and services to infrastructure and facilities throughout Australia.
The purchase price represents a multiple of 6.2 times of Mayfield’s net profit after tax for the 2019 financial year.
Stream will pay for Mayfield through the issue of new shares. For this acquisition, Stream will be valued at $5.65 million.
However for the deal to be completed, it will need shareholder approval, which is expected to be held in mid-August 2020. If approved, the company is expecting the deal to be completed in early September.
The board will provide an independent expert report on the transaction and if it is fair and reasonable.
The general meeting will also facilitate a vote to change Stream Group’s name to Mayfield Group Investments.
The board will also go through a change once the deal is completed. Lindsay Philips, Jon Hobbs and Alan Steele will join the board. Jon is currently the CEO of Mayfield and will be the new Stream CEO.
On the market today, Stream went into voluntary suspension and was last trading for 2.2 cents each.
