Mastermyne to acquire DMS for $20m

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Image credit: www.mastermyne.com.au

Mackay-based mining services company Mastermyne Group Limited has announced plans to diversify its assets and increase its foothold in the coal industry with a new acquisition.

Mastermyne to acquire DMS for $20m
Image credit: www.mastermyne.com.au

Mastermyne revealed that it will acquire the Queensland mining, maintenance and engineering services provider Diversified Mining Services (DMS) in a bid to expand its service offering.

According to the ASX announcement, the purchase will include the issuing of 9.7 million dollars of Mastermyne shares to DMS shareholders, aside from the 10.3 million dollars in cash to pay out and restructure the company’s debt.

DMS shareholders will get 15.6 million Mastermyne shares, representing approximately 17% of the combined shares on issue.

“DMS is a well-respected service provider which will significantly increase the range of services that the Mastermyne Group can offer to the mining and other industries. DMS has a dedicated and well respected management team and workforce, all of which are highly regarded in their respective areas. We look forward to them joining the Mastermyne team and we are very confident that this acquisition will not only bring major benefits to the Company but will also provide ongoing opportunities for the DMS and Mastermyne management and workforce,” said Mastermyne Chief Executive and Managing Director Tony Caruso.

“In addition to DMS’s record of success, we intend to leverage DMS’s customer base and maintenance expertise to the benefit of the entire Mastermyne Group and ultimately to create significant value for our shareholders.”

The deal is subject to DMS shareholders approval and other customary conditions precedent. Mastermyne reported a profit of 2.99 million dollars for the 2014 financial year.

DMS, which started in 2007 and quickly expanded until 2012, has about 300 employees.

“The plan is certainly not to do anything on the ground with the business,” Mr Caruso said.

“There’s some corporate restructuring which won’t affect anyone locally.”