Australia's Swick Mining hits near 8-year high on drilling business merger

DDH1

12/10/2021 02:10

** Shares of Australia's Swick Mining Services  SWK.AX  jump
as much as 24.07% to A$0.335 as co says it will merge its
drilling business with DDH1 Ltd  DDH.AX  
    ** SWK hits its highest level since Nov. 27, 2013
    ** The companies, which both provide drilling services, say
they have agreed to merge their respective drilling businesses
in an all-stock transaction  urn:newsml:reuters.com:*:nASX5L7Nsz 
    ** Deal values Swick at A$0.35 per share, an almost 30%
premium to the stock's close on Monday 
    ** At completion, Swick shareholders will own about 19.7% of
the combined business
    ** Deal to be about 10% - 15% earnings accretive, based on
the FY21 performance of the companies
    ** Stock set for its highest single-day percentage gain
since Aug. 14, 2020
    ** About 3 mln shares of SWK have been traded, about seven
times the 30-day average
    ** SWK up 31.71% this year, as of Monday's close 
    


 (Reporting by Harshita Swaminathan in Bengaluru)
 ((Harshita.Swaminathan@thomsonreuters.com))