NRW Holding (ASX: NWH) says that its pursuit of opportunities to further diversify its revenues and enhance shareholder returns has included discussions with various parties regarding potential acquisitions, including BGC Contracting.
NRW Holding (ASX: NWH) refers to recent media speculation regarding NRW’s potential interest in acquiring BGC Contracting.
In response to these reports, and consistent with statements made in the Company’s Full Year reports, NRW continues to pursue opportunities to further diversify its revenues and enhance shareholder returns.
This has included discussions with various parties regarding potential acquisitions, including BGC Contracting. NRW confirms it has been selected as the preferred bidder in the sale of BGC Contracting (www.bgc.cc), subject to final documentation and a number of conditions considered customary in this type of transaction.
NRW believes there is significant merit in the acquisition of BGC Contracting and would only enter into a transaction applying a similar discipline to previous transactions (Golding Group and RCR Mining Technologies) on terms that deliver appropriate value for NRW shareholders, including a requirement that any transaction be EPS accretive.
In relation to the funding of the potential acquisition, NRW notes that is has multiple funding options available to it and furthermore any transaction would include the assumption of outstanding equipment finance obligations of approximately $190M, which is well supported by a considerable fleet of major mobile equipment.
There can be no assurance that any transaction will result from any discussions with BGC Contracting and NRW will continue to inform the market on any further developments in accordance with its continuous disclosure obligations.
