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  • Hughes Drilling Receives Substantial Shareholder Notice From Invesco Australia 0 comments
    May 13, 2013 1:54 AM

    Hughes Drilling (ASX:HDX) has received a substantial shareholder notice from Invesco Australia, which has acquired over 10 million shares via a placement earlier this month.

    On 9 May 2013, Hughes completed a placement by issuing a total of 27,213,533 ordinary fully paid shares in Hughes at an issue price of $0.32 per share to sophisticated and professional investors.

    The shares, which give Invesco a voting power of 5.59%, were acquired in two lots including 3,969,062 shares for a cash consideration of $1,270,099.84 and 6,187,188 shares for $1,979,900.16.

    The private placement is part of the acquisition funding of $18.5 million at an issue price of $0.32 from that Hughes raised to buy Reichdrill Inc and new production rigs to respond to increasing production drilling demand.

    The purchase price included of US$8.9 million comprised US$5.2 million payable to the seller as well as US$2.5 million applied to pay out existing debt and US$1.2 million to be paid as deferred consideration.

    The acquisition is expected to be earnings accretive on a normalised 12 month basis and after the accounting elimination of profits on sales by Reichdrill to Hughes.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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