Mining services firm Ausdrill rises; releases report that gives nod to Barminco deal

According to Mining News Pro - 

** Mining services firm Ausdrill Ltd rises as much as 12.7 pct to A$1.78, highest since Aug 28
** Stock up after four straight sessions of declines
** Co releases report on Barminco acquisition prepared by Ernst & Young Transaction Advisory Services Ltd
** Barminco is an underground hard-rock mining contractor

** Report concludes that purchase of sale interests from the Sayers Family Trust is "fair and reasonable" to shareholders, in the absence of a superior alternative


** Report was needed as former long-time Ausdrill Managing Director Ronald George Sayers qualified as a "related party" and indirectly holds interest in Barminco


** Sayers expected to hold 3.6 pct stake in Ausdrill following completion of deal
** Ausdrill expects deal to be materially EPS-accretive, with underlying pro forma FY18 earnings indicating EPS(A) accretion of over 28 pct (excluding synergies)
** Deal was initially announced on Aug. 15 and is worth about 150.7 mln new Ausdrill shares, on top of A$25.4 mln ($18.27 mln) in cash to Barminco vendors


** As of last close, Ausdrill stock had fallen 37.1 pct this year ($1 = 1.3900 Australian dollars)