MASSY Holdings Ltd is close to signing an agreement to sell its pre-stressed concrete manufacturer, Massy Pres-T-Con, to Tobago businessman and contractor, Allan Warner. The sale price is approximately $30 million, construction sources told the Trinidad Express yesterday.
The sale and purchase agreement will be for the assets and equipment of the company. Among the Pres-T-Con assets to be acquired by Warner include othe company’s 17-acre are manufacturing facility at O’Meara Arima and ancillary marine/dock services at its Sanctuary Harbour at Sea Lots.
Massy is expected to negotiate separation packages with all of Pres-T-Con’s workerforce.
According to a presentation on the group’s website, “Massy Pres-T-Con has manufactured and installed most of the precast/prestressed concrete products for the construction of bridges, docks, jetties, marinas, buildings and petrochemical industry structures within Trinidad and Tobago, and throughout the Caribbean and northeastern South America.”
But Massy’s 2020 annual report reveals that the manufacturing company was been hit hard by the impact of the Covid-19 pandemic.
“Massy Pres-T-Con Ltd. was adversely affected by low construction activity in Trinidad and Tobago, coupled with the temporary government mandated closure of the construction sector,” according to the annual report.
Construction sources also said Massy Pres-T-Con has been impacted by a decline in demand for its pre-stressed concrete piles, hollow core slabs and augered piles.
The Massy group has made an effort in the last two years to focus the company’s business on its main portfolios—integrated
retail, motors & machines and gas products.
Massy has been attempting to divest companies that do not fall into its three main portfolios. Last September, the T&T diversified holding company sold Massy Technologies (Trinidad) (with operations in T&T, Barbados, Jamaica, and Antigua & Barbuda) as well as Massy Technologies (Guyana) to Musson (Jamaica) Ltd for US$40 million.
That transaction contributed to the group’s after0-tax profit increasing by 21.2 per cent from to $743 million from $613 million, despite of the uncertainties and interruptions to business operations sustained during the financial year as a result of the Covid-19 pandemic.
Massy owns 86.1 per cent of Massy Pres-T-Con.