World leader in specialised drilling solutions, Master Drilling Group Limited said that it will exercise its call option to acquire 60% of the shares in Bergteamet Raiseboring Europe based in Scandinavia.
Danie Pretorius, CEO of Master Drilling, said: “This transaction provides a launchpad for the company to expand our operations in the European markets and further diversify our geographic exposure. There are many synergies between the two companies and this business compliments our focus to provide innovative tailored technology solutions to our clients.”
On 17 November 2015 Master Drilling International Limited (MDI), a subsidiary of Master Drilling, entered into an agreement with Bergteamet AB through which MDI acquired 8 000 ordinary shares in the share capital of Bergteamet.
A shareholder’s agreement was entered into between MDI, Bergteamet and Bergteamet Raiseboring simultaneously and it is through this agreement that MDI now exercises the call option to acquire 12 000 ordinary shares in the share capital of Bergteamet, resulting in a 60% shareholding in Bergteamet.
Bergteamet is highly specialised in raiseboring and conducts operations all over the world. The majority of its raiseboring customers are within the mining sector, hydropower projects and other infrastructure project.
The transaction is subject to a number of conditions to be fulfilled by 15 March 2018.