Wilson Bayly Holmes Ovcon’s Probuild sale falls through

The sale fell through after the Australian government refused the deal in the interests of national security.

Wilson Bayly Holmes Ovcon (WBHO)has announced that the planned sale of its Australian building subsidiary Probuild fell through after the Australian government refused the deal in the interests of national security.

This comes after WBHO received an unsolicited offer from “a major international construction and civil services company” to acquire WBHO’s 88 percent interest in Probuild.

“WBHO has been advised by the potential acquirer of Probuild that it has withdrawn its proposed investment application in Probuild lodged with the Australian Foreign Investment Review Board following advice that its application would be rejected by the Federal Government on the grounds of national security,” the company said in a statement.

Yesterday WBHO said that significant time, investment and ongoing commitment had already gone into progressing the Probuild transaction with due diligence completed.

The group said the commercial terms of the deal had also been mostly agreed between the two parties. However, Probuild’s fundamentals and prospects in the Australian market remained good, and opportunities for Probuild would continue to be assessed to maximise shareholder and Probuild’s value.