The Federal Court of Australia has approved a scheme of arrangement for Perenti to acquire 100 per cent of shares in mineral drilling contractor DDH1.
The scheme will become legally effective after lodgement of the Court orders with the Australian Securities and Investment Commission (ASIC).
The Court orders are being lodged with ASIC today, September 27 2023 by DDH1.
DDH1 will also apply for its shares to be suspended from trading on the ASX from the close of trading today, 27 September 2023.
The acquisition agreement was entered into by DDH1 and Perenti in late June 2023 following a unanimous decision by the DDH1 board to encourage shareholders to vote in favour of the transaction.
DDH1 shareholders will receive $0.1238 cash plus $0.7111 Perenti shares for each DDH1 share held under the agreement.
As a result, Perenti shareholders will hold 71 per cent of the combined entity and DDH1 shareholders will hold the remaining 29 per cent.
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 follows a recent influx of new and extended work contracts for Perenti, set to inject millions into the company and expand its global footprint.
The projects total a $112 million boost for Perenti, with a $70 million contract from Regis Resources, $27 million from BHP and $14 million from Catalyst Metals.