Mining services company Perenti has now implemented the scheme of arrangement it announced with global drilling company DDH1 in June.
Under the agreement, DDH1 shareholders will receive $0.1238 cash plus $0.7111 Perenti shares for each DDH1 share held, implying a value of $1.01 per DDH1 share.
DDH1 will be combined with Perenti’s existing Ausdrill business as part of a newly created drilling services division that will be led by DDH1 chief executive officer Sy Van Dyk.
As a result, Perenti’s shareholders will hold 71 per cent of the combined entity and DDH1 shareholders will hold the remaining 29 per cent.
The Federal Court of Australia approved the transaction in late September.
Perenti managing director and chief executive officer Mark Norwell said the company is pleased to welcome DDH1 team members to the company.
“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 2000 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,” he said.
“DDH1 leverages and builds on nearly 40 years of drilling expertise that our Ausdrill brand holds, enabling Perenti to establish a stand-alone 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.”