Join our daily newsletter At The Bell to receive exclusive market insights
- NRW Holdings (NWH) has raised $120 million through a placement which will fund the acquisition of BGC Contracting
- Earlier this month, the company stated it was the preferred bidder for the privately-owned BGC Contracting company
- The acquisition is expected to deliver an enhanced platform and a diverse range of client services and project solutions
- NRW also plans to offer raise up to $10 million through a share purchase plan
- The company is up 6.71 per cent and shares are trading for $3.02 cents each
NRW Holdings (NWH) has raised $120 million through a placement which will fund the acquisition of BGC Contracting.
Approximately 42.1 million new fully paid ordinary shares will be issued at a price of $2.85 per share.
This represents a 1.4 per cent premium to NRW’s adjusted closing price of $2.81 on November 27 and a 5.2 premium to its adjusted 10-day volume-weighted average price of $2.71.
NRW CEO and Managing Director Jules Pemberton is pleased with the placement and the support received.
“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,” Jules said.
In an announcement made on November 4, NRW stated it was the preferred bidder for the privately-owned BGC Contracting construction company.
NRW is a contract services provider to the Australian resources and infrastructure sectors. It delivers a wide range of operations and civil expertise such as bulk earthworks and concrete installation, contract mining and drill blasting.
The company detailed the purchase of BGC will bring significant value to NRW and already has funding plans in place if the buyer goes ahead.
The acquisition is expected to deliver an enhanced platform and service offering with diversified earnings base and service provision with exposure to mining, construction and DIAB Engineering businesses.
“BGC Contracting has a well-recognised and proud history built around the strong foundations set by the late Len Buckeridge,” Jules said.
“The acquisition is strategically financially compelling and aligns with NRW’s objective to deliver growth across the business and drive NRW shareholder value,” she added.
NRW also plans to offer a share purchase plan to raise up to $10 million from eligible shareholders.
The company is up 6.71 per cent and shares are trading for $3.02 cents each at 1:13 pm AEDT.
