Ausdrill bolsters market share with Barminco acquisition
Image: Barminco. BY REUBEN ADAMS AUSDRILL’s “compelling” $271.5 million acquisition of underground mining contractor Barminco would create Australia’s second largest mining services company. Ausdrill will acquire Barminco – its current partner in the lucrative African Underground Mining Service (AUMS) joint venture – in exchange for 150.7 million Ausdrill shares and $25.4m in cash; equivalent to an equity acquisition price of $271.5m. Once the transaction is completed, Barminco vendors will own about 22.1 per cent of the enlarged Ausdrill, with experienced company director and current Barminco non-executive chairman Keith Gordon to join the Ausdrill board. The acquisition announcement accompanied a set of outstanding full year results from diversified mining services company Ausdrill, including a year-on-year net profit increase...