Australia's DDH1 rises on merger plans with rival Perenti

Perenti

26/06/2023 05:39

(Adds analyst comments)
    ** Shares of DDH1  DDH.AX  rise as much as 11.6% to A$0.96,
on track for their best day since July 26, 2022, if gains hold
    ** Co says it would merge with bigger rival Perenti  PRN.AX 
in a deal valued at A$410 mln ($273.63 mln)
    ** Perenti plunges 11.4% post announcement, and is set to
lose most since Jan. 25, 2022, if trend holds
    ** The implied offer value of A$1.01 per DDH1 share
represents a 17.4% premium to co's last close
    ** Jefferies says deal will help PRN reduce leverage,
increase scale, and improve commodity mix, among other benefits
        ** Citi thinks there could be an upside to the synergies
called out post completion of the deal for Perenti in the future
  
    ** Perenti stock down 3% this year, as of last close, while
DDH down 3.4% YTD

($1 = 1.4984 Australian dollars)

 (Reporting by Rishav Chatterjee and Nausheen Thusoo in
Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))