Maas Group Holdings has emerged as a suitor for the entire building materials empire of the late Len Buckeridge, BGC.
Second round offers have been submitted for the business and it is understood that adviser Macquarie Capital will now consider the offers with the owners - the Buckeridge family members.
DataRoom understands that a very limited number of parties made proposals to buy the company as a whole.
An Australian private equity firm is understood to have bid for the business.
Maas Group initially looked at the business, but sources close to the company say it is not in the second round, despite talk in the market that the group had submitted a proposal for the entire group.
US-based turnaround fund Oaktree initially bid for BGC but is no longer thought to be in the race.
Founded in 2002, Maas Group is an Australian construction materials, equipment and services provider with diversified exposures across property, civil, infrastructure and mining sectors.
It has a market value of $1.27bn and is based in Dubbo.
The interest comes as Maas Group recently raised about $105m through a placement as it purchased four hard rock quarries and two sand quarries in the Isaac region of central Queensland for up to $14.95m including cash and stock.
The offer price of $4 was at a 1.2 per cent discount to its last traded price.
At the time, the company said that the funds from the raise were being used to enhance Maas Group’s financial capacity to fund growth and acquisition initiatives, including near-term opportunities in the construction materials market.
It listed in 2020 with a $530m market value.
The Buckeridge family is selling the business after a legal case surrounding Mr Buckeridge’s estate.
It is understood that the family has been keen to divest the business in one line to prevent tax costs.
However, the challenge for buyers is the loss making construction arm that builds 3500 homes annually and comes with seven-year guarantees on the dwellings.
DataRoom understands that the Buckeridge family may be willing to come to an arrangement where they either retain the building arm or it is returned to them after a sale.
Overall, it is understood that BGC generates $100m of earnings before interest, tax, depreciation and amortisation and $1bn of revenue.
Earlier, it was expected to sell for about $1bn, but now some believe a price of between $500m and $700m is more realistic.
BGC is seen as a complex, eclectic business where operations are interrelated and was build up over years by Mr Buckeridge, who died in 2014.
BGC’s West Australian cement grinding terminal, quarries, concrete and transport businesses account for least half BGC’s overall value.
It has a brick business operating under the Midland Brick and Brikmakers brands as well a construction arm.
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