re: Ann: Ausenco expands in NA oil and gas ma... Seems a good...

re: Ann: Ausenco expands in NA oil and gas ma... Seems a good transaction if investors think the oil sands industry will remain competitive relative to the shale oil industry.

Price/ EBITDA = c. 3x so on the surface a good acquisition.

Zero dilution as funded by cash + debt. c. $2m of synergistic cost savings for FY14.

Similar to USD, AUD is falling relative to CAD - from $1.07 in mid May to $0.96 now (source: Yahoo finance) so upside in FY14 from falling AUD possible, not to mention lowers Australia exposure, which we've talked about previously.

Publication that recently recommended AAX @ $2.15 came out and said that a broker [undisclosed] had cut AAX's margin lending rate from 75% to 0% and that may be one of the reasons for its hard fall down to $1.70 recently.

Cheers
John