Entry into Deed of Surrender
The Board of Directors of AusGroup Limited (the “Company”, and collectively with its subsidiaries, the “Group”) refers to the Company’s announcement dated 2 October 2013 that AusGroup Singapore Pte. Ltd. (“AGS”), a wholly-owned subsidiary of the Company, had entered into a lease agreement (the “Lease Agreement”) with Boustead Trustees Pte. Ltd. (as trustee of the Boustead Real Estate Fund) (“Boustead”) for the lease of the premises at 36 Tuas Road, Singapore 638505 (the “Premises”).
In line with AGS’ ongoing plans to wind down its operations in Singapore, the Company wishes to announce that AGS has entered into a deed of surrender (the “Deed of Surrender”) dated 25 January 2017 with Boustead under which the parties have agreed to the early termination of the Lease Agreement and the surrender of the Premises with effect from 31 January 2017. The costs associated with extinguishing obligations under the lease were substantially provided for in the consolidated financial statements of the Group for the financial year ended 30 June 2016, however any cost impact associated with the terms of the Deed of Surrender when offset against release of remaining provisions will have a negligible effect on the financial results of the Group for the year ended 30 June 2017. The settlement reached with Boustead removes a long term liability, thus allowing the Company to strengthen its focus further on promoting growth in the maintenance sector of the Oil & Gas market.
By Order of the Board
Eng Chiaw Koon