NRW Holdings has confirmed it has been selected as the preferred bidder to buy BGC Contracting.
The company, responding to media speculation, stated it was looking to pursue opportunities to further diversify its income and enhance shareholder returns, which has included discussions with various parties, including BGC Contracting.
NRW added it would only enter into the transaction by applying a similar discipline to its previous acquisitions, such as Golding Group and RCR Mining Technologies, on terms that deliver suitable value for its shareholders.
“NRW believes there is significant merit in the acquisition of BGC Contracting,” an NRW statement read. “In relation to the funding of the potential acquisition NRW notes that it has multiple funding options available to it.
“Furthermore, any transaction would include the assumption of outstanding equipment finance obligations of approximately $190 million, which is well supported by a considerable fleet of major mobile equipment.”
NRW has made it clear there is no assurance a transaction will result from its discussions with BGC, but it will continue to update the market on any further developments. Any deal would be subject to final documentation and conditions.
The contractor has proven its aptitude within the industry this year, having secured a number of major contracts, including at BHP’s South Flank iron ore project, Fortescue Metals Group’s Eliwana project and Rio Tinto’s Koodaderi project.
BGC Group announced it was progressing the sale of its contracting arm in February this year, which had been expected since the company’s founder Len Buckeridge passed away in 2014.
Emeco Group has also expressed interest in acquiring BGC, potentially adding to its list of recent purchases – Matilda Equipment in 2018 and Force Equipment, Orionstone and Andy’s Earthmovers in 2017.