On Wednesday, 15 August 2018, Ausdrill announced it had entered into a binding agreement to acquire 100% of the equity and equity-like instruments in Barminco. Barminco is one of Australia’s leading underground hard-rock mining contractors and is Ausdrill’s existing joint venture partner in AUMS.
If implemented, the acquisition will create Australia’s second largest mining services company, transforming the Ausdrill Group. The bid values Barminco’s equity at A$271.5 million, together with $425.5m of net debt, implying an enterprise value of A$697 million. At acquisition completion, Barminco vendors will own approximately 22.1% of New Ausdrill.
The acquisition is subject to customary conditions precedent including Ausdrill shareholder approval, no material adverse change to Barminco or Ausdrill, a favourable independent expert’s report, continuation of material contracts and required change of control consents.
Executive Chairman, Ian Cochrane, said: “Ausdrill is pleased to present its shareholders with this transformational opportunity. We have delivered operationally in FY18 and the Barminco transaction would broaden our strategic footprint to be Australia’s clear #2 mining services company and set in place a balance sheet with the capacity to achieve sustainable and profitable growth.”
Underground, Barminco operates as a contractor across Australia, Egypt and India with the capability and fleet to provide customised solutions for longhole, specialist and production drilling applications. Production mining services include drilling, charging and blasting, load and hauling to the surface. It also offers a complete suite of underground diamond drilling services including grade control and orebody definition in all standard core sizes to
2,000 m.
