Fund VI in the RCF stable?
Known (at least by me from now on) for it’s sharp teeth.
— I’m not sure when it was started but it zoomed into the Australian public eye back in June 2015 when it bought bought Ausenco, a debt-stricken, Australian-based global mining services engineer which it still owns and which appears from its’ website to be doing very well as a private operation;
https://ausenco.com/
https://www.asx.com.au/asxpdf/20160915/pdf/43b6b0qxmx8st9.pdfAusenco acquired by Resource Capital Fund
Ausenco CEO Zimi Meka. Picture: Steve Pohlner
- By PAUL GARVEY
SENIOR REPORTER
@PDGarvey- UPDATED 6:43AM JUNE 15, 2016, FIRST PUBLISHED AT 12:00AM JUNE 15, 2016
Former engineering high-flyer Ausenco has become the latest mining services company to be swallowed by private equity, agreeing to an offer from Resource Capital Fund that values the company at $153.7 million.
Brisbane-based Ausenco, which was worth more than $15 a share at the height of the resources boom, has agreed to the 40c-per-share offer under pressure from its debt position and the downturn in mining activity.
The engineering group had more than $60m in debt to its name that was scheduled to mature in August, and faced an uphill battle to pay back the debt without causing significant dilution to its shareholder base.
Ausenco’s management, led by chief executive Zimi Meka, and its strategic partner Duro Felguera of Spain will continue to hold their stakes in the company.
Chairman George Lloyd told The Australian that the RCF offer represented a significant premium to its recent share price.
“It’s the prospect of certainty in terms of that cash amount versus the uncertainty of the company continuing to operate on a stand-alone basis in what is still a pretty uncertain and volatile market,” Mr Lloyd said.
The offer is the latest in a string of deals and attempted deals between private equity and the mining services sector. Cardno, Bradken and Boart Longyear are among the other mining services companies to have attracted interest from private equity.
Ausenco shares closed 5c higher to 39c.
Another of its’ takeover targets was the Canadian zinc prospect, Norzinc.
Initially (?) RCFvi made a thumping $20m investment (May 15, 2018), buying 20 million shares for 20c each, plus giving a $10m bridging loan, and taking an option on warrants;
https://norzinc.com/wp-content/uploads/2019/01/pr051518.pdf
….Six demonstrated the ‘long view’ there … the closing action of the takeover went through just last year in second half 2022 (* ouch *) https://www.mining-technology.com/news/norzinc-prairie-creek/.
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