Calibre Board concludes strategic sale process

Calibre Board concludes strategic sale process

Calibre Group Limited ("Calibre") today announced the termination of negotiations with Mercury Capital consortium, following the consortium’s withdrawal, regarding a potential sale of parts of the business.

Subsequently, upon further detailed review Calibre considers enhanced shareholder value will arise from continuing in the current business form and restructuring noteholder and shareholding arrangements. This reflects greater value from the superior opportunities that Calibre continues to see from improvement in businesses opportunities in the sectors in which we operate, particularly in East Coast infrastructure and resources in Western Australia.

It is the intention of the Board and management to focus on these opportunities and pursue organic growth and improved results for shareholders. Concurrently, Calibre will engage with the note holders to discuss possibilities in relation to the Series A notes which are due to mature at the end of October 2018. In addition, the Board will progress an alternate exit path for its major shareholder First Reserve over the coming month.

Under the terms of the consortium exclusivity deed, the revised terms with the note holders are now in effect.

As announced on 15 March 2018, if the Notes are not redeemed by Calibre prior to maturity (31 October 2018 in respect of the Series A Notes and 31 October 2020 in respect of the Series B Notes), then the noteholders may elect to convert the Notes into fully paid ordinary shares in the Company.

Mr Peter Massey, Calibre’s CEO and Managing Director said “with the potential sale process now coming to an end, and following the exit of G&S Engineering from the Group, we have a platform for a more refined business with an exciting future. Our core focus from here will be on operational excellence in project delivery to our diverse set of exceptional customers across Australia and New Zealand. On behalf of the Board I would like to thank all our staff for their hard work and dedication throughout this process and look forward to working with them into the future.”

Calibre will provide an update to shareholders again following discussions with the note holders and First Reserve and will also finalise and release its 30 June 2018 audited financial statements by 30 September 2018.

-ENDS-

INVESTOR AND MEDIA CONTACT:

Craig Allen. Calibre Group Limited

enquiries@calibregroup.com | +61 422 009 143

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