Babylon Pump & Power completes Primepower divestment for $150,000, takes ~$5M write-down. 03 August 2026 12:51 PM AEST Summarize with AI You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to its research reports, in-depth technical and fundamental research. Learn more Babylon Pump & Power (ASX:BPP) has completed the sale of its non-core subsidiary Primepower Queensland Pty Ltd to Maximor Nominees Pty Ltd, with settlement occurring on 31 July 2026 and cash consideration of $150,000 received at completion. Key points. * Divestment of Primepower Queensland Pty Ltd to Maximor Nominees Pty Ltd completed on 31 July 2026. * Babylon received cash consideration of $150,000 at settlement. * The transaction is expected to result in a non-cash write-down of approximately $5.0 million, primarily relating to core engines and inventory. * The sale marks a full exit from the maintenance segment with no ongoing liabilities retained. * The company's resources are now focused entirely on its specialist water management rental business. Babylon Pump & Power, a specialist resources services provider supplying high-pressure pumping, dewatering, and project water management solutions to the Australian mining sector, announced the completed divestment of Primepower Queensland Pty Ltd on 3 August 2026. The transaction was settled on 31 July 2026, with Maximor Nominees Pty Ltd acquiring the non-core subsidiary. The company said the completion marks a clean exit from the maintenance segment, with no ongoing liabilities attached to the transaction. The divestment follows the company's stated strategy of simplifying its operational structure and sharpening its focus on specialist water management rental services. What the ~$5.0 million non-cash write-down means for BPP shareholders. While Babylon received $150,000 in cash consideration at completion, the transaction is expected to result in a non-cash write-down of approximately $5.0 million, relating primarily to core engines and inventory previously held within the Primepower business. The company said the divestment also enables further corporate simplification and supports ongoing cost reduction initiatives. Shareholders should note this write-down will affect reported financial results for the relevant period, though the company has not provided specific guidance on the timing or full earnings impact beyond what was stated in the latest company update. How removing Primepower sharpens bpp's water management rental focus. With the Primepower divestment finalised, Babylon said its financial and management resources are now fully directed toward growing its specialist water management rental business. The company brings decades of experience supplying and maintaining equipment in remote and offshore locations across Australia's resources sector, including high-pressure pumping and dewatering operations. The removal of the maintenance segment is described as a strategic simplification, designed to concentrate the Group's capabilities and capital on what the company considers its core competency - rental-based water management services for mining clients. Transaction authorised by Managing Director Michael Shelby. The company update was authorised by Managing Director Michael Shelby, who can be contacted directly at Babylon's High Wycombe, Western Australia office. The company also engaged NWR Communications for media enquiries related to the transaction. Babylon Pump & Power additionally provides speciality power generation solutions, including system design, installation, commissioning, and operations and maintenance services. Investors may be watching for further updates on the company's cost reduction progress and any financial reporting that reflects the impact of the approximately $5.0 million non-cash write-down associated with this divestment. Download Free Report - Explore 3 Stock Ideas & Industry Insights Unlock 3 stock ideas and key industry insights in its free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice. All investments involve risk - consider independent advice before making any investment decisions. Disclaimer:

* Maximor raised $9 million in seed funding led by Foundation Capital, with support from Gaia Ventures, Boldcap, and notable angel investors.