RDG exits units to narrow focus
Mining services provider Resource Development Group has sold two of its smaller subsidiaries to their management teams and associates.
RDG said the transactions for Ecologia Environmental Consultants and Intellect Systems were completed at the close of business yesterday.
The small size of the businesses meant the group did not need approval from the Australian Securities Exchange or the corporate regulator, the Australian Securities and Investments Commission to finalise the sales.
The move leaves RDG with Central Systems and Engenium as operating subsidiaries.
“These mutually agreeable sales of businesses allow RDG to focus on its core business of providing construction, plant modification, maintenance and shutdown services to the market,” chairman Andrew Ellison said. “This allows RDG to look to invest in other business opportunities outside the construction market.”
Mr Ellison said the new owners of Ecologia and Intellect would endeavour to continue carving out a niche in the market for themselves.
The businesses had been a part of RDG from soon after it listed in 2011 as a vertically integrated service provider. They had struggled with the onset of the mining downturn.
The acquisition of bigger company Centrals last year shifted control of RDG to Mr Ellison and other Centrals shareholders.
