A Clayton Utz team has advised leading Australian drilling services company DDH1 Limited (ASX: DDH) on its acquisition of Swick Mining Services Ltd (ASX: SWK) by scheme of arrangement.
Perth Corporate partner Liz Humphry, together with lawyers Georgia Denny, Tyson Ginn and Tess Dillon, advised on and negotiated the deal, with key support from Competition partner Elizabeth Richmond.
Under the scheme, Swick shareholders will receive 0.2970 new DDH1 shares for each Swick share held. Swick shareholders will own approximately 19.7% of the combined business following implementation, representing an implied equity value of $0.35 per Swick share or $99.3 million.
The scheme is subject to a number of conditions, including the requisite majority of Swick Shareholders approving the scheme, and the demerger of the Mineral Technology business known as "Orexplore", as well as FIRB approval. The transaction is expected to complete late January 2022.
Commenting on deal, Liz said:
This transaction creates a drilling powerhouse in DDH1 Limited and is another example of the trend we're seeing in mining services businesses seeking to consolidate their operations where there are synergies, and it makes strategic sense. Our team really enjoyed working with the great people at DDH1 and Moelis and congratulate them on this business milestone.
