By Sherin Sunny and Roshan Thomas
Feb 5 (Reuters) – Australia’s Maas Group said on Thursday it would sell its building materials division for up to A$1.70 billion ($1.19 billion) to pivot towards artificial intelligence-related infrastructure, sending its shares crashing more than 26%.
Maas Group will sell its Construction Materials (CM) unit to German cement maker Heidelberg Materials’ local arm, HMA, and invest A$100 million in Nvidia-backed AI infrastructure firm Firmus Group for a 1.7% stake.
Founded over two decades ago by former rugby player Wes Maas, the conglomerate is selling a unit that generated about half of its A$219 million in core operating earnings in fiscal 2025.
Shares of the firm plunged as much as 26.1% in the steepest one-day decline ever, while the broader benchmark index fell 0.4%.
Ron Shamgar, head of Australian equities at TAMIM Asset Management, said, the market was surprised the company is exiting a strong construction business in Queensland, riding population growth and the Brisbane Olympics build-up.
“And instead it is going into the capex heavy AI/Data center sector.”
The divestment is part of the Australian construction materials, equipment and services provider’s broader shift towards data center construction, a sector that has attracted investor interest as demand grows for facilities supporting AI systems.
Australian data center landlord Goodman Group has already embarked on a shift towards data center development.
Maas Group’s A$100 million minority investment in Firmus follows earlier dealings with the company. It secured an A$200 million electrical infrastructure contract with Firmus Technologies in mid-December.
After the completion of the transaction, about 1,140 employees will transfer with the construction materials business to HMA and ensure continuity of operations, it said.
The transaction is expected to be completed in the second half of calendar year 2026, and is subject to regulatory and shareholders’ approvals.
($1 = 1.4292 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru, additional reporting by Roshan Thomas; Editing by Alan Barona and Rashmi Aich)
