DDH1 Limited and Perenti Group have announced entering into a binding agreement to merge. The offer value for the deal is around AUD 410 million and is subject to the approval of DDH1’s shareholders.
DDH1 is the largest Australian exploration drilling contractor, owning under its umbrella DDH1 Drilling, Strike Drilling, Ranger Exploration Drilling, and from the late-2021, Swick Mining Services. Perenti Group owns a range of Australian and international mining and exploration drilling companies, including Barminco, African Underground Mining Services, and Ausdrill. A newly formed Drilling Services Division will be among the biggest in the global exploration drilling industry, though each company will continue operating under its brand and management team. The division will be headed by current DDH1 CEO Sy Van Dyk. He commented:
‘Today, we are excited to announce the Proposed Transaction between DDH1 and Perenti, paving the way for the creation of the ASX’s leading contract mining services group. … The strategic fit between Perenti and DDH1 is exceptional, and our combined expertise will enhance our value offering to clients and employees alike. With a shared commitment to sustainability, innovation, safety, and service excellence, we are well-positioned to continue growing our businesses. This transaction is a testament to our dedication to driving growth, providing enhanced liquidity, and delivering value for our shareholders.’
The transaction is subject to a vote from DDH1 shareholders, expected to take place in September 2023. The proposed merger scheme will provide shareholders with approximately 29% of the combined business. There is yet no date for the completion.
For more information, please read the announcement, available here: https://perentigroup.com/blog/perenti-and-ddh1-continued-creation-of-enduring-value/