Drilling services specialist Boart Longyear (ASX:BLY), which floated on the ASX in 2007 with a $2.35 billion IPO, has announced its imminent exit from the Australian share market through a US$371 million takeover.
The US-based company has struck a binding arrangement agreement with an affiliate of American Industrial Partners Capital Fund (AcquireCo) under which shareholders will receive one of 2 different amounts for their equity.
Longstanding Boart shareholders Ascribe and Centrebridge will pocket US$1.2351 per share under the takeover offer. Ascribe owns 14.83% of Boart Longyear, and Centerbridge owns 45.54%.
Meanwhile, First Pacific Advisors, Corre Partners Management, and Nut Tree Capital Management, along with all other Boart shareholders, will receive US$1.9554 per share under the offer.
Ascribe, Centerbridge, First Pacific, Corre, and Nut Tree collectively own 98.86% of Boart Longyear, and the company says each of these shareholders has entered into irrevocable voting and support agreements with AcquireCo and agreed to vote in favour of the transaction and against any alternative transaction.
The US$1.9554-per-share price tag represents a 64% interest to Boart’s last closing price on the ASX of $1.75 on 22 December and a 96% premium to the company’s 30-day volume-weighted average price from the day before the announcement of the deal.
Boart’s board unanimously recommends that shareholders take the AcquireCo deal.
President and CEO Jeff Olsen says the offer gives shareholders the opportunity to realise an ‘attractive’ cash amount for their shares at a ‘significant premium’ to recent trading prices.
“We also expect that our customers and employees will benefit from AIP’s planned investment in our core business to drive sustainable growth and long-term value.”
“We also expect that our customers and employees will benefit from AIP’s planned investment in our core business to drive sustainable growth and long-term value”
Boart shares have spiked 55.43% to $2.72 as of 3:20pm AEDT. The company’s market cap currently sits at $517.86 million — a fraction of its IPO value all those years ago.
Write to Joshua Smith at Mining.com.au
Images: Boart Longyear
