Ausdrill eyes raising, acquisitions By Michael Bennet - The Australian - April 06, 2011 10:40AM
MINING services company Ausdrill plans to raise up to $149.5 million for equipment and potential acquisitions, one day after appointing former Leighton chief executive Wal King to its board.
Ausdrill also said today that "from time to time", it receives unsolicited approaches from suitors but no discussions are "sufficiently advanced or sufficiently material to Ausdrill?s earnings that Ausdrill considers warrant disclosure at this time".
"These approaches are evaluated on their merits," it said.
The Perth-based company said it would raise $129.5m via a placement to institutional and sophisticated investors around the world at $3.50 per share -- a 9.1 per cent discount to its closing price yesterday.
Ausdrill will also undertake a non renounceable share purchase plan to retail shareholders to raise up to $20m, also at $3.50 a share.
The new shares will not be entitled to Ausdrill's interim 5.5 cent dividend payable on April 21, 2011, which has a record date of April 12, 2011.
Argonaut Securities and JP Morgan are acting as joint bookrunners and lead managers to the placement.
Ausdrill said it would use the funds to purchase plant and equipment for projects commencing in the next 12 months and projects tendered for, and possibly for its African Underground Mining Services joint venture with Barminco to expand its underground business.
Further acquisitions could also be considered "if opportunities arise", following its acquisition of drilling business Connector Drilling in February for $30m.
The company also said it has a number of quotations and tenders outstanding and is negotiating a number of contracts which could be material if awarded.
The news follows the appointment yesterday of Mr King as a non-executive director and deputy chairman after 24 years under at Leighton where he was renowned for large growth projects and new frontiers of expansion. He left Leighton late last year and was succeeded by David Stewart.
"It is a most significant step for Ausdrill to secure the services of a person who is widely acknowledged as one of Australia?s finest business leaders," Ausdrill chairman Terence O'Connor said yesterday.
"As the company enters the next phase of its development, it will be invaluable to have the benefit of the insights and advice of someone of Mr King?s background and experience."
Mr King is a director of Coca-Cola Amatil and a former member of the Business Council of Australia and president of the Australian Constructors Association.
As part of his remuneration package at Ausdrill, he will receive 1 million options exercisable at $4.21.
Any interest in CKK??? Must be if they believe CKK is going to grab a big part of the market share in the future.
CKK Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
