04/08/2014 - 16:03

RDG acquires Central Systems

04/08/2014 - 16:03

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Infrastructure, energy and resources service provider Resource Development Group has jumped 275 per cent today on news it will acquire Perth-based Central Systems.

RDG acquires Central Systems

Infrastructure, energy and resources service provider Resource Development Group has jumped 275 per cent today on news it will acquire Perth-based Central Systems.

The acquisition will be funded entirely by the issuing of RDG shares in a deal that is a reverse takeover by the private mining services group, adding to a flurry of such deals in recent months.

Five Central shareholders will hold 78 per cent of RDG, with each of its four founding investors receiving 16.6 per cent.

Two members of the Central board are to be invited to join the board at RDG.

Richard Eden and Andrew Ellison were both previously directors of Cimeco, a subsidiary of Forge Group.

Mr Eden joined Central in 2010, whils Mr Ellison joined in 2012.

Central had unaudited revenue and EBITDA of $195 million and $27 million respectively in the recent financial year.

It provides maintenance and remedial services to mining, energy and infrastructure projects and has a client base that includes Samsung, Xstrata, BP, BHP Billiton and Rio Tinto.

RDG closed up 275 per cent to 15 cents per share.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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