Brief: DDH1 and Perenti To Merge

Perenti

25/06/2023 23:41

June 26 (Reuters) - DDH1 Ltd  DDH.AX :
    * ENTERED INTO A BINDING SCHEME IMPLEMENTATION AGREEMENT
    * UNDER AGREEMENT DDH1 WILL COMBINE WITH PERENTI
    * UNDER TRANSACTION DDH1 SHAREHOLDERS WILL RECEIVE FOR EACH
DDH1
SHARE HELD A$0.1238 CASH PLUS 0.7111 PERENTI SHARES
    * DDH1 SHAREHOLDERS WILL OWN 29% OF COMBINED ENTITY
    * DDH1'S BOARD UNANIMOUSLY RECOMMENDS SHAREHOLDERS VOTE IN
FAVOUR
OF PROPOSED TRANSACTION
    * DIRECTORS OF DDH1 CONTROLLING 13.1% OF DDH1 SHARES INTEND
TO
VOTE IN FAVOUR OF PROPOSED TRANSACTION
    * IMPLIED OFFER VALUE VALUING DDH1'S BUSINESS AT AN EQUITY
VALUE
OF A$410 MILLION
    * DDH1 CEO, SY VAN DYK, WILL BECOME PRESIDENT OF NEWLY
FORMED
DRILLING SERVICES DIVISION
    * UPON COMPLETION OF PROPOSED TRANSACTION PERENTI WILL HAVE
AN
EXPANDED BOARD OF 8 MEMBERS
    * ROB COLE TO REMAIN CHAIR OF PERENTI; MARK NORWELL AND
PETER
BRYANT WILL REMAIN MD & CEO AND CFO OF PERENTI RESPECTIVELY
    * EXPANDED BOARD COMPRISED OF 6 DIRECTORS FROM PERENTI AND 2
FROM
DDH1
    * PROPOSED TRANSACTION IS EXPECTED TO SECURE SIGNIFICANT P&L
SYNERGIES OF A$22 MILLION
    * SEES FY23 UNDERLYING EBITDA WILL BE BETWEEN A$117 MILLION
AND
A$121 MILLION
    * BELIEVES FY23 UNDERLYING EBITDA WILL BE BETWEEN A$117
MILLION
AND A$121 MILLION
    * IN Q4 DDH1 HAS SEEN IMPROVEMENT IN UTILISATION AND
REVENUES AS
CUSTOMER DRILLING PROGRAMMES RECOMMENCED

Source text for Eikon:  ID:nASX7QVGNS 
Further company coverage:  DDH.AX 

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