Singapore-based pan-Asian crane business Tat Hong is one of the largest crawler crane companies in the world. It had owned 70% of the Australian hire firm. Tutt Bryant’s independent directors unanimously recommended the deal to shareholders.
Tutt Bryant shareholders are to receive AUD0.92 in cash per share. The value of the total issued shares is approximately AUD135 million; thus resulting in a 46% increase from the Australian Stock Exchange (ASX) price of AUD0.63 per share prior to the confirmation of Tat Hong’s offer in July. This was deemed an attractive offer by independent expert, Grant Thorton, who valued Tutt Bryant shares between AUD0.86 and AUD1.13 per share.
Tutt Bryant profits in 2009 decreased with crane hire and heavy haulage accounting to a high proportion of the company’s revenue. Managing director, David Haynes explained; “The second half of FY10 saw a substantial slowing in demand. Projects were delayed, movement of equipment suspended and utilities projects were deferred. This had a major negative impact on the division’s revenue compared with FY09. However, the crane hire business recorded 15 per cent revenue growth over the previous year.”
Haynes is optimistic for 2011, he said; “The crane hire and heavy haulage division will improve as FY11 proceeds, already we have seen indications of better trading… Order books for cranes are filling as major project come back online.”
Haynes continued to explain the future for the organisation; “the operational side of Tutt Bryant will be unaffected by our ownership structure.” He also applauded employees for the FY10 results achieved at uncertain financial times.
Tutt Bryant was established in 1938 and today provides crane hire and haulage, equipment distribution and equipment hire.
The Tat Hong Group owned 100% of Tutt Bryant from 1996 up until the ASX listing of Tutt Bryant in 2005.
