Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Mining contractor NRW Holdings has confirmed it is the preferred bidder in the sale of BGC Contracting
  • NRW’s response follows a flurry of media speculation suggesting it is a front runner for the purchase
  • The company said the purchase will help grow the business and add to shareholder value
  • Ahead of the purchase, NRW’s share price is up just over 13 per cent today, currently trading for $2.55 per share

NRW Holdings has responded to the flurry of media speculation suggesting it is set to buy privately-owned construction company BGC Contracting.

The mining contractor revealed to the Australian market it is currently the preferred bidder. All that stands in the way is final documentation and conditional approvals.

In its release to the market today NRW explained in a bid to grow its business and create shareholder value it has been considering a number of purchases, with BGC being one of them

“NRW continues to pursue opportunities to further diversify its revenues and enhance shareholder returns. This has included a discussion with various parties regarding potential acquisitions, including BGC Contracting,” it wrote.

The company detailed the BGC purchase will provide significant value to the company. It also notes it has funding plans in place if the buyer goes ahead.

Last month, BGC reported it is retaining its title as W.A.’s largest builder after constructing almost 50 per cent more homes than its nearest competitor during the year. The building company has $1.7 billion worth of projects in its pipeline.

Ahead of the purchase, the ASX 200-lister’s share price is up 13.33 per cent today and currently trading for $2.55 per share.

NWH by the numbers
More From The Market Herald
Codan (ASX:CDA) - CEO, Donald McGurk

" Codan (ASX:CDA) shares slips despite military contract win

Codan (CDA) subsidiary, DTC Communications, has been awarded multi-year contract with a global technology company.

" Rio Tinto (ASX:RIO) fined over worker heat stress death

Rio Tinto (RIO) has been fined $80,000 and forced to pay $7500 in costs today after three employees were exposed to extreme conditions
Dicker Data (ASX:DDR) - Chairman and CEO, David Dicker (left)

" Dicker Data (ASX:DDR) soars after announcing profit increase

Dicker Data (DDR) shares have soared after the ASX-200 lister posted a 26 per cent increase in profit before tax over the last

" Pilbara Minerals (ASX:PLS) and POSCO to form JV for South Korean LHM facility

Pilbara Minerals (PLS) has come out of a trading halt this morning after announcing it will form a joint venture (JV) with South