MCS Services Revises Highways Traffic Asset Sale, Sets $1.16M Price Tag
MCS Services Limited has finalized a revised agreement to sell the core assets of its subsidiary Highways Traffic Pty Ltd to Altus Traffic for $1.16 million, pending shareholder approval. This marks a strategic step in MCS’s ongoing business realignment following the sale of its larger security division.
- Revised Asset Purchase Agreement executed with Altus Traffic for $1.16 million
- Sale includes vehicle fleet, intellectual property, and key contracts
- Completion expected by early May 2026, subject to shareholder approval
- Transaction follows termination of previous agreement and reflects strategic divestment
- Altus Traffic is a leading traffic management firm with strong financial capacity
Strategic Divestment of Highways Traffic Assets
MCS Services Limited has announced a revised Asset Purchase Agreement with Altus Traffic Pty Ltd for the sale of its subsidiary Highways Traffic Pty Ltd’s core business assets. The transaction, valued at $1.16 million, includes the transfer of the vehicle fleet, intellectual property, and material contracts. This follows the termination of a previously announced agreement, signaling a recalibration of MCS’s approach to divesting its smaller, less profitable business units.
The sale is expected to complete by early May 2026, contingent on standard conditions such as a final inspection of assets and crucially, shareholder approval at an Extraordinary General Meeting. The move aligns with MCS’s broader strategy after offloading its larger MCS Security subsidiary in mid-2024, as the company seeks to streamline operations and focus on more scalable opportunities.
What’s Included in the Sale?
The assets being sold encompass Highways Traffic’s vehicle fleet, which had a net book value of $670,000 as of December 2025, alongside intellectual property including the business name and branding. Material contracts will be novated or assigned to Altus, ensuring continuity of service and client relationships. Altus has also committed to offering employment to all Highways Traffic staff, which may ease the transition for employees.
Altus Traffic, established in 2002, is a dominant player in traffic management across Australia and New Zealand, boasting a fleet of over 2,500 vehicles and a workforce exceeding 5,500. Its strong balance sheet and acquisition experience were key factors in MCS’s decision to proceed with this buyer, providing confidence in Altus’s ability to integrate and grow the acquired business.
Financial and Regulatory Considerations
The transaction will see Highways Traffic settle its outstanding vehicle finance of approximately $460,000 at settlement, with remaining assets such as trade debtors to be realised post-sale. The net proceeds will flow back to MCS after settling liabilities, with the Board currently having no immediate plans for the surplus funds.
Given the sale constitutes disposal of the company’s main undertaking, ASX Listing Rule 11.2 requires shareholder approval, which MCS will seek at an upcoming EGM. The company also acknowledges the potential need to re-comply with ASX listing rules should it pursue future acquisitions or restructuring, highlighting an ongoing period of strategic evaluation.
Looking Ahead for MCS
While the sale marks a significant step in MCS’s transformation, the Board remains open to new opportunities, having received non-binding interest from other parties in the past. The company’s future direction may involve further corporate restructuring or asset acquisitions, but for now, the focus is on completing this transaction smoothly and leveraging the proceeds to strengthen its position.
Bottom Line?
MCS’s divestment of Highways Traffic assets clears the way for a leaner future, but investors will watch closely for what comes next.
Questions in the middle?
- Will MCS deploy the net proceeds from the sale into new growth initiatives or return capital to shareholders?
- How will Altus integrate Highways Traffic’s operations and what impact will this have on market competition?
- What strategic moves might MCS pursue following this divestment, especially regarding potential re-compliance with ASX listing rules?
