This ASX 300 company has just inked a $1.7 billion asset sale to fund a pivot to digital

Maas Group Holdings Ltd (ASX: MGH) has struck a deal to sell its construction materials business for $1.7 billion, with the money to be ploughed into the fast-growing digital infrastructure sector.

The deal with Heidelberg Materials Australia is expected to be complete during the second quarter of 2026 and includes $120 million in contingent payments related to the achievement of certain milestones.

Maas Group Chief Executive Officer Wes Maas said the deal made sense for the company.

We are extremely proud of the construction materials business we have built over many years. The scale, quality and performance of CM are a testament to the hard work and commitment of our people, and it is reflected in the value being recognised by Heidelberg Materials.  Heidelberg Materials is well-positioned to continue building on the CM business’ strengths, leveraging its global expertise and track record in delivering major infrastructure projects while providing continuity for the business and its people. This transaction allows MGH to crystallise value from a high-quality asset while positioning the group toward the next phase of infrastructure investment – including digital infrastructure, electrification and AI-enabled assets. The sale enables a strategic refocus and disciplined redeployment of capital into areas where we see strong structural tailwinds.

The deal will require regulatory approvals, including sign-off from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

It will also require a sign-off by Maas Group shareholders at a meeting to be held shortly.

Looking to the future

Maas said in its statement to the ASX on Thursday that the deal would help fund a strategic shift into digital assets.

As the company said:

Just as the Group positioned itself early into renewables-related infrastructure, MGH is now positioning to participate in the next wave of infrastructure investment, combining digital, AI, and electrification opportunities. The Australian data-centre and electrification markets present scalable, high-value -based delivery model.

The digital infrastructure earmarked as growth opportunities included “high-density power, fibre-connected hyperscale data centres and AI compute clusters”.

There would also be more focus on electrification, “leveraging MGH’s existing electrical business and selectively adding strategic capability to expand its participation in the growing electrification sector”.

As well as expanding in these areas, the money raised from the sale would be used to pay down debt.

There would also be “consideration of potential capital management initiatives including capital returns and share buybacks, subject to final transaction proceeds, post-transaction requirements and approvals”.

The post This ASX 300 company has just inked a $1.7 billion asset sale to fund a pivot to digital appeared first on The Motley Fool Australia.

More reading

• This ASX stock is edging lower today after a shareholder friendly move
• 2 ASX shares these experts rate as a buy right now

Motley Fool contributor Cameron England 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.