KUALA LUMPUR (Oct 30): Sime Darby Bhd has entered into a conditional share purchase agreement (SPA) to acquire the entire issued share capital in Brisbane-based Heavy Maintenance Group Pty Ltd (HMG) for AU$58 million (about RM172 million), cash- and debt-free.

In a filing today, Sime Darby said the conditional SPA was inked between its wholly-owned indirect unit Sime Darby Allied Operations Pty Ltd, and Pemba Capital Partners Funds I Partnership LP and other minority interests yesterday (Oct 29).

"Pemba Capital Partners Fund I Partnership LP is the majority shareholder owning 92.5% of the issued share capital, while the remaining 7.5% is owned by a number of minority shareholders," said Sime Darby.

The company, said Sime Darby in the filing, provides services in the mining, oil and gas and other heavy industries which require the manufacturing or refurbishment of hydraulic cylinders, sophisticated engineering and protective surface finishing coating.

"HMG is a leading specialist provider in the manufacture, refurbishment and surface finishing of equipment components to its customers in Australia and Asia Pacific," it added.

Sime Darby Industrial Australia director Dean Mehment said HMG would "complement and add capacity" to its Mackay-based cylinder refurbishment and chroming business Austchrome.

"The acquisition of HMG builds geographic coverage by combining our Mackay capability with those of the HMG facility in Brisbane," said Mehment in a separate statement.

"We are very pleased to have retained HMG's strong management team and look forward to working with HMG to continue building its leadership in the mining cylinder refurbishment market as well as drive growth in the oil and gas sector," he added.

It said the AU$58 million will be funded by external borrowing, and acquisition is expected to be completed by end-2018.

At noon market break, shares of Sime Darby rose 0.46% or one sen to RM2.17 for a market capitalisation of RM14.76 billion.