Photo by: Reuters
PERTH (miningweekly.com) - ASX-listed diversified mining services provider Perenti has implemented the scheme of arrangement to acquire fellow-listed driller DDH1.
The two companies earlier this year entered into a scheme implementation agreement under which DDH1 shareholders received A$0.1238 cash plus 0.7111 Perenti shares for each DDH1 share held. DDH1 shareholders were also offered an ability to elect maximum scrip or maximum cash consideration alternatives, subject to scale-back arrangements based on a total available cash pool of A$50-million.
Based on the five-day volume weighted average share price of both Perenti and DDH1, the offer valued DDH1 shares at A$1.01 a share, representing a 17.4% premium to the company’s last closing price.
“The acquisition of DDH1 is a very important milestone in the continued growth and evolution of Perenti, and we are very pleased to welcome the circa 2 000 DDH1 employees, their four highly respected brands of DDH1 Drilling, Strike Drilling, Ranger Drilling and Swick Mining Services along with their expansive client base into the wider Perenti Group,” said Perenti MD and CEO Mark Norwell on Friday.
“DDH1 leverages and builds on nearly 40 years of drilling expertise that our Ausdrill brand holds, enabling Perenti to establish a standalone Drilling Services Division of significant scale and global relevance.
“Perenti is now one of the largest drilling services contractors globally, offering a complete range of underground and surface drilling services, including specialisation in deep directional drilling.
“With the completion of the acquisition, we look forward to demonstrating the significant value proposition that the combination of Perenti and DDH1 can offer to all our stakeholders, and we expect to provide the market with consolidated 2024 guidance in November.”