A bid implementation agreement has been signed by the two firms whereby NRW will acquire the shares of Primero that are on offer
Australian mining contractor NRW Holdings has launched a A$100m ($73m) takeover bid for Australian engineering company Primero Group.
The two companies have entered into a bid implementation agreement, whereby NRW will acquire the shares of Primero that are on offer.
Under the conditional off-market takeover offer, NRW is offering Primero shareholders A$0.275 ($0.200) in cash and 0.106 NRW shares for each Primero share held.
Primero recommends shareholders to accept NRW takeover offer
Following the signing of the bid implementation agreement, the board of Primero has recommended its shareholders to accept the NRW takeover offer.
NRW managing director Jules Pemberton said that the acquisition would provide it with the opportunity to expand its Minerals, Energy & Technologies specialised capability.
Pemberton added: “NRW and Primero have already been working together on a number of projects and we look forward to continuing to work with the Primero team to build out Primero’s design, construction and operations capabilities through NRW’s client network, and expect that the combined operations of NRW and Primero will present clients, employees and shareholders with compelling outcomes.”
The offer, which follows NRW’s recent acquisitions of DIAB Engineering and RCR Mining Technologies, is a part of NRW’s plan to further diversify its strategic platform.
Primero managing director Cameron Henry said: “Importantly, the NRW Offer allows Primero to avoid the need for a potential significantly dilutive capital raising to fund working capital required to deliver on our FY21/22 contracted order book, including the continued non-payment by Wartsila on the residual Barker Inlet Power Station contract monies.”