MAAS Group (ASX:MGH) Plunges 27% After Selling Its Strongest Division for $1.7B- Buy the Dip or Avoid?

MAAS Group drops 27% after a major division sale

MAAS Group Holdings (ASX: MGH) plunged 27 per cent to A$4.11 on Thursday after announcing the sale of its construction materials division to Heidelberg Materials Australia for up to A$1.703 billion. The math looks attractive on the surface; the deal proceeds equate to roughly A$4.69 per share, well above the current trading price. Yet the market’s brutal reaction tells a different story: investors are not worried about the price MAAS got. They are worried about what the company will become without its best asset.

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MAAS Group Sells Its Strongest Division at a Premium- But What Remains?

There is no doubt that management got a good price. The A$1.7 billion deal, which includes A$120 million in performance-linked payments, values the division at around 15.4 times its FY25 EBITDA, above what comparable businesses have fetched in recent years.

But here is the problem. Construction materials were not just any division; it was the company’s growth engine. In FY25, it delivered 38 per cent EBITDA growth and contributed almost half of the entire group’s underlying EBITDA. It was carrying the rest of the business, particularly while civil construction struggled with renewable energy project delays that saw that segment’s EBITDA drop 35 per cent for the 2025 financial year

In our view, MAAS Group timed the sale well and extracted strong value. The concern is what is left behind. Without construction materials, the remaining business is smaller, slower-growing, and more exposed to the cyclical headwinds that have already been dragging on performance. That is what the market is pricing in, not the deal itself, but the post-deal reality.

From Quarries to Data Centres: MAAS Group Bets $100M on AI Infrastructure

Alongside the sale, MAAS Group revealed a A$100 million equity investment in Firmus Grid, an AI data centre developer, picking up a 1.7 per cent stake. Firmus has raised more than A$800 million and is building AI infrastructure campuses across Australia.

This is not a completely left-field move. MAAS subsidiary JLE already secured a A$200 million contract with Firmus in December to deliver electrical systems for data centre builds. Management is framing the equity stake as a way to deepen that relationship and position for the next wave of infrastructure- digital, AI, and electrification.

We think the direction makes strategic sense at a high level. Data centre construction is booming in Australia, and MAAS already has industrial capabilities that fit the supply chain. But A$100 million for a tiny minority stake in a pre-IPO startup gives MAAS Group no control and plenty of uncertainty. The AI story is exciting, but MAAS has yet to prove it can build a second act around it.

The Investor’s Takeaway for MGH

The bull case rests on simple math. The deal proceeds alone are worth more per share than the current stock price, suggesting the market is essentially valuing the remaining business at close to zero. Chairman Stephen Bizzell flagged potential capital returns, bolstering the 10% share buyback program the company formally extended earlier this week, and the founding Maas family, holding a 49% stake, confirmed they will vote in favour.

The bear case is about what comes next. MAAS Group is parting with its best asset while its remaining divisions face headwinds. The AI pivot is unproven, completion is not expected until the second half of 2026 pending ACCC and FIRB approvals, and investors face a long wait before seeing how proceeds get deployed.

We believe the 27 per cent selloff looks overdone when you look at the cash value alone. But the market is pricing in genuine execution risk, and that is not unreasonable. For investors comfortable with uncertainty, the disconnect between deal value and share price is hard to ignore. For those who prefer clarity, waiting until MAAS outlines its capital return plans may be the smarter move. The sale itself was well-timed; the real test is whether management can turn the proceeds into something equally valuable.