Babylon Pump & Power sells maintenance unit for $150,000

·       Babylon executed a share purchase agreement to sell 100% of its subsidiary Primepower Queensland for an initial purchase price of $150,000.

·       The transaction provides the company with a clean exit from the maintenance segment with no ongoing operating liabilities.

·       The sale supports Babylon's ongoing corporate restructuring and refocuses the business on its core water management rental operations.

Specialist resources services provider Babylon Pump & Power (ASX:BPP) executed a binding share purchase agreement to sell 100% of its subsidiary Primepower Queensland to Maximor Nominees, trading as Westralian Diesel, for an initial purchase price of $150,000.

The transaction exits Babylon from the maintenance segment, contrasting with its previous strategy of expanding multi-service regional footprints.

The company stated that the transaction represents a further milestone in its strategic transformation and sharpens its focus on core rental operations.

The initial purchase price of $150,000 is subject to customary post-completion adjustments for working capital and net debt, with completion expected by the end of July.

Following the announcement, the Babylon share price was unchanged at $0.077.

The sale aligns with Babylon's previously announced strategy to simplify its operating structure and support ongoing cost reduction initiatives.

The company previously acquired Primepower in September 2019 to establish a presence in Australia's resources sector before shifting focus towards rental and environmental services.