BGC is exploring at least three options for the sale of the group’s national contract mining, maintenance and civil construction business, BGC Contracting.
The Western Australian-based company has been expected to launch a sale process of its diversified business units in the years since founder Len Buckeridge died in 2014.
BGC also includes residential, building products, commercial, engineering and property management divisions, in addition to the mining, maintenance and construction contracting arm.
The mining business holds contracts across Australia, including agreements at the Whyalla iron ore operations in South Australia and the Boggabri coal mine in New South Wales.
BGC has appointed the company’s corporate advisor, Macquarie Capital, to lead the sale process.
Chairman Neil Hamilton said the options being considered for BGC Contracting include a possible sale, divestment of parts of the business and/or alternate operating models or structures.
“While this review is ongoing it will be business as usual for our customers and our staff, and the focus of BGC Contracting will continue to be on delivering excellent services for our customers,” Mr. Hamilton said.
“BGC Contracting is one of Australia’s leading independent contractors, with a workforce of 2000 delivering a current contract pipeline valued in excess of $1.7 billion across the country.
“Our workforce remains our most valuable asset and we are confident that all options being explored are strengthened by the value that our people bring to our customers.”
Alan Tate, BGC Chief Financial Officer, is assuming the role of acting Chief Executive Officer of the company as it moves into the sale process.
The company’s board is searching for a permanent CEO and plans to announce the appointment in due course.
Mr. Buckeridge, who founded the company in the 1960s, divided the group in his will among 15 family members.
“The board is following an orderly and strategic process to consider the various options to allow the Buckeridge family to realise their investment in the group, and these are the next steps in that process,” Mr. Hamilton said.
“This is a significant undertaking and will take time. In the interim, our focus remains on continuing to win work across the group, and safely meeting and exceeding the expectations of our customers.”