05/11/2007 - 15:31

Imdex completes Southernland SA acquisition for $2.8m

05/11/2007 - 15:31

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West Perth-based Imdex Ltd has completed its acquisition of Chilean drilling fluids manufacturer and supplier Southernland SA for $US2.5 million in cash and scrip, (under $A2.8 million), the company has announced.

Imdex completes Southernland SA acquisition for $2.8m

West Perth-based Imdex Ltd has completed its acquisition of Chilean drilling fluids manufacturer and supplier Southernland SA for $US2.5 million in cash and scrip, ($A2.8 million), the company has announced.

 

 

The full text of a company announcement is pasted below

Imdex Limited (Imdex) is pleased to announce that it has finalised an agreement to acquire all of the shares in Southernland SA (Southernland) for US$2.55 million effective from 1 November 2007.

The purchase price of US$2.55 million was satisfied by the:

  • - Payment of a cash consideration of US$1.275 million; and
  • - Issue of 723,679 ordinary shares totalling US$1.275 million.

The shares were issued at A$1.92 per share, being the issue price determined by the closing weighted average share price on the 5 business days prior to 1 November 2007. These shares will be held in voluntary escrow for a period of 24 months from 1 November 2007.

Southernland undertakes the manufacture and sale of drilling fluids and chemicals based in Santiago, Chile. Over the past 10 years the company has positioned itself as the largest independent drilling fluids company in Chile.

Southernland is complimentary to the existing Drilling Fluids and Chemicals business of Imdex and the acquisition will facilitate the global expansion of Imdex's drilling fluids business. As part of this global expansion, the aim is to become a significant drilling fluids and chemicals supplier to the mining, oil & gas and water well industries in Latin America.

This transaction is in line with the Imdex strategy to grow its business globally and build value for shareholders. The benefits this transaction delivers to Imdex and its shareholders are that:

  • It is complementary to the current Imdex drilling fluids and chemicals business;
  • It provides good growth opportunities in Latin America and is consistent with Imdex's global expansion strategy; and
  • It supplies the mining, oil and gas and water well industries and for Imdex establishes a base for the Latin America region.
  • STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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