Perenti’s new acquisition will buttress the millions of dollars’ worth of contracts the mining services provider has recently secured.
The Federal Court of Australia recently greenlit a scheme of arrangement for Perenti to acquire 100 per cent of shares in DDH1, a mineral drilling contractor with a market cap of almost $337 million.
With almost 200 rigs, the drilling company boasts one of the top five largest fleets in the world.
DDH1 shareholders will receive $0.1238 cash plus $0.7111 Perenti shares for each DDH1 share held, totalling roughly $410 million.
Perenti plans to combine DDH1 with its existing Austdrill business to form a new drilling services division led by DDH1 chief executive officer Sy Van Dyk.
At the time the deal was struck, Perenti chief executive officer Mark Norwell said the transaction is an exciting step in creating enduring value and certainty by building a portfolio of complementary high-quality businesses.
“DDH1 is a highly respected tier 1 global operator, with significant capabilities across a complete range of specialised surface and underground drilling services, that are complementary to our existing clients and service offering,” Norwell said.
The acquisition will support Perenti’s global operations, which include a number of renewed or new high profile mining services contracts.
Perenti was recently awarded a A$368 million open pit mining services contract at Sandfire Resources’ Motheo copper mine in Botswana.
The miner will continue underground development and production works at the Regis Resources’ Garden Well and Rosemont underground gold mines in WA to the tune $70 million.
Perenti has also been awarded $27 million by BHP to undertake exploration surface drilling services over two years at the BHP Mitsubishi Alliance site in Queensland.
The company will also complete a $14 million underground drilling work contract at Catalyst Metals’ Plutonic underground gold mine in WA over the next two years, subject to finalisation of contract terms.