13/01/2015 - 15:14

Ausdrill buys into Titan

13/01/2015 - 15:14

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Perth-based mining services group Ausdrill has become a substantial shareholder in Titan Energy Services after subscribing for nearly $1 million worth of shares in the Brisbane firm’s capital raising last week.

Ausdrill buys into Titan

Perth-based mining services group Ausdrill has become a substantial shareholder in Titan Energy Services after subscribing for nearly $1 million worth of shares in the Brisbane firm’s capital raising last week.

Ausdrill has gained 9.7 per cent voting power through the purchase of 5.5 million shares, with Titan also offering a partially underwritten three-for-five non-renounceable entitlement offer of $5.1 million.

As a result of the share purchase, Ausdrill will be entitled to appoint a representative of its choosing to the Titan board.

Meanwhile Titan, which offers oil and gas field services including operation of portable camps, drilling rigs and equipment hire and transport and logistics, has entered into agreements to de-hire about 60 per cent of its existing camps.

“The restructure is being effected under separate commercial agreements with individual suppliers,” Titan said in a statement.

“One of the agreements has already taken effect and another is subject to the successful completion of the capital raising and the parties entering into definitive legal agreements consistent with the binding heads of agreement.”

Shares in Ausdrill were 6.2 per cent lower at 45 cents per share, while Titan’s share price plummeted 21.7 per cent to 18 cents per share at the close of trade.

 

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