Ausdrill Northwest has sold its waterwell drilling assets to Vysarn for $16 million in a move that exits the contractor from the hydrogeological drilling business.
The sale is part of a considered portfolio review that assessed which businesses fit within the new strategic direction of Ausdrill, which now falls under the branding of Perenti Group.
Ausdrill acquired Western Australian hydrogeological drilling company Connector Drilling for around $30 million in 2011 to broaden its capabilities, according to Ausdrill founder Ron Sayers.
Perenti managing director Mark Norwell said in April, “I am very pleased that we have entered into this binding agreement to sell the assets of Connector Drilling, which delivers against the plan we outlined in our half year results.”
Vysarn chairman Peter Hutchinson said the acquisition was the culmination of an extensive search for a relisting asset for the company.
The company plans to obtain a debt funding of around $8 million and raise another $5 million through public capital raising to fund the acquisition and relist on the ASX.
“We are pleased in recent weeks to have secured contracts with Tier 1 clients Hancock Prospecting and Easternwell. These contracts together with the acquisition of the assets provide us an ideal platform to meet the growing water management demands of the resources, construction and infrastructure industries,” Hutchinson said.
Vysarn plans to draw further use of its drill rigs and associated assets to drive its organic growth and future acquisition as the company looks for opportunities to complement and expand its service offering.