19/02/2016 - 11:51

NRW shares skyrocket

19/02/2016 - 11:51

Bookmark

Save articles for future reference.

NRW Holdings emerged from a trading halt this morning with its share price nearly tripling in value on the back of news yesterday that its joint venture with Salini Impregilo had been named the preferred contractor for the $2 billion Forrestfield-Airport Rail link.

NRW shares nearly doubled in value today.

NRW Holdings emerged from a trading halt this morning with its share price nearly tripling in value on the back of news yesterday that its joint venture with Salini Impregilo had been named the preferred contractor for the $2 billion Forrestfield-Airport Rail link.

At the close of trade today, NRW shares were 184.4 per cent higher to 16.5 cents per share, a much-needed boost for the company, which had been hit hard by both the mining downturn and contract disputes at the Roy Hill iron ore mine in the Pilbara last year.

Following the share price spike, the ASX made an official enquiry into the price change, asking if NRW considered its announcement yesterday of the preferred contractor status should have had that much of an effect on its share price.

In response, NRW company secretary Kim Hyman said the company first became aware of the news after the close of trade on Wednesday.

“At that time, I received a telephone call from Carl Lantzke of the Public Transport Authority of WA,” he said.

“Mr Lantzke advised me the Salini Impregilo-NRW joint venture had been selected as the preferred respondent for the Forrestfield-Airport Rail link project. He further informed me that a letter confirming the selection would be sent through.

“On receipt of that letter and perusing the content, I formed the view that the entity should apply for a trading halt before the market opened the next day.”

Mr Hyman said the trading halt request was granted early yesterday morning and was lifted after the close of trade last night.

The joint venture was selected ahead of two other proponents – one featuring John Holland and Leighton Contractors, while the other comprised Spanish players Acciona Infrastructure and Ferrovial Agroman, and Dutch company BAM International.

The contract is expected to be finalised by May of this year, with negotiations between the joint venture and the Public Transport Authority imminent.

NRW received an earlier price query from the ASX on Monday, asking to explain why its share price nearly doubled to 7 cents each on February 11, however it responded by saying it was unaware of any reason for the rise.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options