GRD board asks shareholders to back agreement with AMEC
20 Jul 2009
Australian mining services contractor GRD Ltd has entered into a binding agreement for sale of its shares for $106 million with British engineering group AMEC plc.
Under the terms of the agreement AMEC will buy all shares of GRD, which reported a 2008 loss of $62.2 million, at 55 cents cash per share amounting to a premium of 34 per cent to the company's closing price of 41 cents per share on 10 June, the last trading day before AMEC's proposal.
GRD chairman Richard Court said in a statement to the Australian Securities Exchange that the board was of the opinion that the cash offer provided a good opportunity to GRD shareholders to realise value and secure an attractive premium in the uncertain environment in the market.
He added that the board was unanimous that AMEC's proposal was in the best interests of the shareholders.
The agreement which will be implemented through a scheme of arrangement is subject to shareholder agreement.
The offer price also values the company at a 75 per cent premium to the three-month volume weighted average price of GRD shares at 31 cents as of 10 June.
London-based AMEC plc is a leading British engineering company engaged in providing consultancy, engineering and project management services to the oil and gas, mining, power, nuclear, process industries.
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