28/08/2014 - 13:58

OTOC shares up on Bosco buy

28/08/2014 - 13:58

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Shares in Perth contractor OTOC have surged after it announced it had taken a first step towards creating a national surveying business by acquiring Victorian firm Bosco Jonson for $17 million.

OTOC shares up on Bosco buy
OTOC chief executive officer Simon Thomas.

Shares in Perth contractor OTOC have surged after it announced it had taken a first step towards creating a national surveying business by acquiring Victorian firm Bosco Jonson for $17 million.

OTOC said it would pay $14 million in cash and $1 million in shares upfront for the surveying business, with a further $3 million to be paid once it has cleared financial hurdles.

“OTOC is considering its options for funding the up-front consideration which includes using cash and existing debt facilities,” the company said in a statement.

The company said the acquisition forms part of its strategy to create a premium national surveying business.

It chose to buy Bosco to use as an entry gate into the Victorian urban development market, utilising the Melbourne surveyor’s skills in town and urban planning.

“Bosco Jonson is a highly regarded quality business and a leader in the Victorian market in surveying and town planning,” chief executive officer Simon Thomas said.

“The acquisition of Bosco Jonson provides OTOC with an ideal first step in terms of size, existing capabilities and geographic reach in our strategic goal of creating a premium national surveying business.

Following the acquisition, OTOC said it would have over 230 staff working in its aerial surveying and town planning business, with offices in Perth, regional Western Australia and Melbourne.

Yesterday, it announced it had raised its full-year profit by 5 per cent to $5.46 million.

The company said it declared no dividend payouts, however, as it planned to use the cash to fund its movement into the surveying market.

OTOC’s share price rose by 26.6 per cent to 19 cents per share at 1:55pm. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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