Ariadne Australia Limited (ASX:ARA) Market Update
Partnership Details
Ariadne Australia Limited (ASX:ARA) has successfully executed definitive partnership documentation with Orams Group Limited (OGL) and Precinct Properties. The partnership enables Precinct Properties to acquire a 24.9% interest in the ground lease and buildings of Orams Marine Village, and a 50% interest in an adjoining residential site.
This collaboration is set to be completed by the end of November 2024, facilitating the acceleration of construction for approved commercial buildings and residential developments in Orams Marine Village.
Financial Impact
The partnership will significantly reduce OGL’s debt from NZ$103 million to approximately NZ$17 million. This financial restructuring is expected to provide stable cash flows from OGL’s 75.1% interest in the property joint venture and cash flows from Orams Marine Services Ltd, New Zealand’s largest marine maintenance and refit services business. OGL will also fully redeem the convertible note held by the Orams NZ Unit Trust upon transaction completion.
Operating Performance Update
Orams Group Limited reported strong year-to-date operating performance with a consolidated EBITDA of NZ$4.32 million for the four months ending October. The property division saw an EBITDA of NZ$2.23 million, marking a 13% increase compared to the previous period. Meanwhile, Orams Marine Services experienced an impressive 67% rise in EBITDA to NZ$2.09 million. The forward order book for maintenance and refit work remains robust, with bookings extending into 2026.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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