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Hughes Drilling Chairman Increases Shareholding

Hughes Drilling's (ASX:HDX) chairman Robert Hackett has increased his investment in the company by acquiring 1,562,500 ordinary shares via a placement earlier in the 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.

Reichdrill Inc. acquisition

In March, Hughes completed the acquisition of 100% of the issued share capital in Reichdrill Inc.

Reichdrill is the long standing and exclusive supplier of blast hole production rigs to Hughes.

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.