Haddington to acquire profitable services and minerals group
Haddington has entered into an agreement to acquire all of the issued shares of Minvest International Corporation, an unlisted diversified services and minerals group with operations in Australia, Indonesia and Madagascar.
The Directors of Haddington have strongly endorsed the transaction, which will transform the company into a diversified resources group with a substantial cash flow and a large portfolio of prospective mineral projects.
Under the agreement, which is subject to satisfactory completion of due diligence and shareholder approval by May 31, Haddington will issue 45.6 million shares as consideration to Minvest shareholders who will enter into a voluntary escrow in respect of these shares for a period of between two and three years, providing strong incentive to Minvest principals to continue to drive the value of the merged business.
The Minvest Group has reported an average un-audited EBITDA of approximately $3m per year since 2005 and expects its operations to grow into the future. This cash flow will significantly enhance Haddington’s ability to explore its mineral projects.
In addition to the services businesses, Haddington will assume the Minvest portfolio of mineral projects, which, together with Haddington’s existing portfolio of mineral assets, will provide Haddington with a large inventory of exploration projects across a range of commodities and will provide a new direction for its exploration efforts.
- 18 Apr 2007
HDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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