AusGrp

AusGrp: DBSV note that traders may want to hesitate before punting on AusGroup's plan to demerge its subsidiaries into a group headed by wholly owned subsidiary AGC Australia, which will seek a listing on the ASX; AusGroup then plans to enter a reverse takeover and acquire suitable assets. The shares of AGC will be distributed to Ausgroup shareholders. Overall, existing AusGroup shareholders will still own the same business as they will hold 100% of the shares in AGC, and also retain their shares in AusGroup (which will be injected with suitable assets), but their shareholdings in AusGroup will be diluted,. In addition to the change in costructure, AusGroup's filing to the SGX notes the matter is at a preliminary stage and the company hasn't identified any assets for acquisition, adding there is no certainty suitable assets will emerge. The stock is up 12.2% at $0.46.