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NRW raises A$120m for BGC buy

29th November 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Mining services provider NRW Holdings on Friday said that it had received firm commitments to raise A$120-million through a share placement.

NRW noted that some 42.1-million shares will be placed at a price of A$2.85 a share, representing a 1.4% premium to the company’s adjusted closing price on November 27, and a 5.2% premium to its adjusted ten-day volume weighted average share price.

Net proceeds from the placement will go towards funding the acquisition of BGC Contracting.

NRW earlier this week struck a takeover agreement with BGC Contracting to acquire the services provider for A$116.4-million in cash, while also assuming A$193.6-million worth of debt related to asset finance.

“I am extremely delighted with the success of the placement which was very strongly supported by investors who clearly share our enthusiasm for the acquisition of BGC Contracting, which represents a value accretive step change in scale and diversity for NRW’s business across Australia at an attractive value,” said NRW CEO and MD Jules Pemberton.

“We are particularly grateful for the support of our existing shareholders and pleased to welcome a number of new, high quality institutions onto the register.”

Edited by Creamer Media Reporter

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