Hellaby Holdings' share price rallied by 9.3 per cent after the company announced the sale of its subsidiary, Equipment Group, to a private equity fund for $81 million, booking a capital gain of around $30 million.
The company said it had reached a conditional agreement to sell Equipment Group --- which specialises in heavy equipment sales, servicing and forklift rentals - to Maui Capital Aqua Fund.
Proceeds from the sale would be earmarked for further investment into Hellaby's core automotive and resource services Groups, after initially being used to reduce debt, the company said.
Hellabys chief executive Alan Clarke said the board had been working through a comprehensive strategic analysis of Hellaby's business model since late last year.
"Midway through this, an unsolicited approach was received from Maui Capital, and after careful consideration the Board has determined that the terms of the offer would crystallise considerable value for Hellaby's shareholders," he said in a statement.
