MENU

Wagners to build Adani airport?

Wagners Holding Company Limited (ASX: WGN) hasn’t been on the ASX for long but is already featuring in the news.

Wagners is a diversified Australian construction materials provider and is the largest independently owned cement manufacturer and supplier in South East Queensland, supplying approximately one third of the market’s cement requirements.

It also provides customers with concrete batching, quarrying, precast concrete products, reinforcing steel, contract crushing and haulage services.

Therefore, it should come at no surprise that it has been in contact with Adani about the possible construction of a Carmichael Coal Mine Airport in Queensland.

In an ASX announcement the company said ‘The Company confirms that it has entered confidential contract negotiations with the mine owner, Adani for the potential future construction of this airport. These negotiations have continued over a significant period of time and following a competitive tender process by Adani.’

‘Wagners cannot comment on any discussions or agreements between Adani and local councils interested in funding construction of an airport’.

Wagners has been involved with constructing several other airports, so it would make sense that it’s involved with the Adani mine as well in its own backyard.

Speaking to the AFR, non-executive chairman Denis Wagner said that Wagners will not be intimidated by activists if it goes ahead in building a $30 million airport for fly-in, fly-out workers.

In my opinion, this could be a very big deal for Wagners and be a stepping stone to other large projects if it can build this high-profile airport on time and on budget using eco-friendly construction materials.

Foolish takeaway

I think Wagners could be one of the best construction-related companies to own on the ASX. It has a promising medium-term future with a large pipeline of infrastructure projects. Australia is a new and fast-growing country, our cities are constantly growing thanks to urbanisation and there will likely always be demand for Wagners’ quality products. I’m looking forward to seeing Wagners first report.

Until I can have a good look at Wagners' financials, I'd rather buy shares of these top growth ideas.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.