Ausdrill shareholders approve Barminco acquisition

Diversified mining services company Ausdrill Limited has announced that shareholders at its annual general meeting voted in favour of the proposed acquisition of underground hard-rock mining contractor Barminco.

The positive shareholder vote satisfies a major condition in completing the acquisition, with Ausdrill working towards satisfying all remaining conditions for completion by 31 October 2018.

“The board is delighted that shareholders have backed what will be a transformative deal for Ausdrill,” said Ausdrill Chairman Ian Cochrane. “The two businesses are a great fit, and by bringing Barminco into Ausdrill we will create Australia’s second-largest mining services company by revenue, which has a unique combination of surface and underground technical expertise.

“We are now working through the few remaining conditions and look forward to updating the market when the acquisition is completed, anticipated to be in the coming week.”

Ausdrill announced on 15 August 2018 that it would acquire Barminco, one of Australia’s leading underground hard-rock mining contractors and Ausdrill’s existing joint venture partner in African Underground Mining Services. Under the deal, Ausdrill will acquire all of the equity and equity-like instruments in Barminco in exchange for 150.7 million fully paid ordinary ex-dividend Ausdrill shares and $25.4 million in cash.

Ausdrill’s board of directors unanimously recommended that shareholders vote in favour of the acquisition and an Independent Expert’s Report by Ernst & Young Transaction Advisory Services Limited concluded that it was fair and reasonable to Ausdrill’s shareholders.