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EC 3, 2012DEAL JOURNAL AUSTRALIA
Singapore’s Civmec In Talks to Buy Australia’s Allmine
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Singapore-listed services company Civmec Ltd. is in talks to acquire Australian mining services company Allmine Group Ltd., a person familiar with the matter said.

By Gillian Tan

Singapore-listed services company Civmec Ltd. is in talks to acquire Australian mining services company Allmine Group Ltd. , a person familiar with the matter said.
Negotiations revolve around a scrip-based proposal that would value Allmine at more than 25 cents a share, or more than 77 million Australian dollars (US$80.3 million), the person said.
Allmine last traded at 13.5 cents, and a formal offer at the mooted minimum price would represent a premium of at least 46%.
Australian billionaire James Packer‘s Ellerston Capital owns 11% of Melbourne-based Allmine, which is trading at a current price-to-earnings ratio of just 2.7 times.
Allmine operates engineering, procurement, construction and maintenance divisions. Its project alliance partners include China Metallurgical Group Corp. and China Non-Ferrous Metal Industry’s Foreign Engineering Construction Co.
In the year to June 30, Allmine’s net profit more than quadrupled to A$13.9 million, while its gearing levels stood at 17%. The company forecast revenue growth of between 20% and 30% in the 2013 fiscal year and said it had forward contracts worth A$141 million and growing.
Civmec provides services to the resources, infrastructure and utilities industries and in November, said its order book totaled 201 million Singapore dollars (US$164.1 million). Though it is listed in Singapore, Civmec’s headquarters and heavy engineering facilities are in Perth, Western Australia state.