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Perenti to fully acquire DDH1

MinRes has taken home two more awards at the 2023 AIM WA Pinnacle Awards.

Perenti and DDH1 have entered into a binding scheme implementation agreement that will involve Perenti acquiring 100 per cent of DDH1 shares.

Under the agreement, DDH1 shareholders will receive $0.1238 cash plus $0.7111 Perenti shares for each DDH1 share held, implying a value of $1.01 per DDH1 share and a premium of 17.4 per cent based on 5-day volume-weighted average price to June 23 of $1.2520.

As a result, Perenti shareholders will hold 71 per cent of the combined entity and DDH1 shareholders will hold the remaining 29 per cent.

Perenti chief executive officer (CEO) Mark Norwell said the transaction with DDH1 is an exciting step in delivering its purpose: to create enduring value and certainty by building a portfolio of complementary high-quality businesses.

“DDH1 is a highly respected tier 1 global operator, with significant capabilities across a complete range of specialised surface and underground drilling services, that are complementary to our existing clients and service offering,” Norwell said.

DDH1 will be combined with Perenti’s existing Ausdrill business as part of a newly created drilling services division that will be led by DDH1 CEO Sy Van Dyk, who said that the deal with Perenti is a great opportunity for DDH1 stakeholders and is a testament to its dedication to growth.

“This represents a transformative opportunity for all DDH1 stakeholders, enabling them to participate in the additional upside that comes from being part of an enlarged and dynamic mining services company,” Van Dyk said.

“The strategic fit between Perenti and DDH1 is exceptional, and our combined expertise will enhance our value offering to clients and employees alike. With a shared commitment to sustainability, innovation, safety, and service excellence, we are well positioned to continue growing our businesses.”

The DDH1 board has unanimously recommended that its shareholders vote in favour of the proposed transaction, subject to no superior proposal emerging.

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