Hughes Drilling (ASX: HDX) has closed its acquisition of JSW Australia, bringing together two of Australia's leading drilling contractors following the issue of Hughes shares to the latter's shareholders.
The acquisition is expected to be earnings accretive for Hughes on a forward nomalised 12 month basis.
It issued JSW shareholders 26,918,080 priced at $0.26 each, or about $ 6,998,900.80. It will also retain JSW's existing debt of $17.4 million.
JSW is a leading drilling contractor located in Western Australia with 24 specialist drill rigs (4 rigs subcontracted), extending the company's core blast hole drilling operations into the iron ore mines of northwest Western Australia.
Last financial year, JSW had a turnover of $30.6 million.
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