Angophora will buy 15.8% of Tempo by buying $38 million shares at $0.25 per share.

 

The firm is the private investment vehicle of Guido Belgiorno-Nettis, the joint managing director of Transfield Holdings, a company that is no longer involved in the engineering and services sectors.

 

Belgiorno-Nettis will join the board as a non-executive director of Tempo. 

 

He headed up the engineering and construction operations for Transfield Australia, New Zealand and Asia for more than a decade, and helped shape Transfield Services. 

 

His investment will increase Tempo's cash holdings to around $25 million and enable Tempo to expand its business through organic growth opportunities and strategic acquisitions.

 

Chairman and founder Carmelo Bontempo has welcomed Belgiorno-Nettis' experience.

 

"Guido's experience and successful track record in engineering and construction operations will be invaluable as Tempo moves into its next phase of growth," he said.

 

Belgiorno-Nettis said Tempo had an excellent team and string track record, which he said would give the company a competitive edge. 

 

"We look forward to assisting Tempo to become a leading national provider of specialist maintenance and construction services in the energy, mineral resources, industrial and commercial sectors," he said,

 

Despite the ending of the LNG and mining booms, Tempo CEO Max Bergomi said Tempo had a number of exciting growth opportunities in the pipeline.

 

"Angophora Capital will further enhance our ability to grow the business organically, benefitting from the experience and relationships of the Angophora team, and attract talent, whilst also pursuing strategic acquisitions," he said.

 

The firm has been able to shrug off weak markets and posted a first half profit thanks to a strong performance from its operating divisions, which are still benefiting from the tail end of the LNG construction boom.

 

The ASX-listed concern generated revenue of $55 million for a net profit after tax of $3.7 million, all of which it banked, taking its available cash balance to $13.3 million. 

 

The deal should be finalised by December 31.