VDM Group Ltd (VMG) is pleased to announce that it has agreed to acquire the 25% minority interest in Cape Crushing & Earthmoving Contractors Pty Ltd and the entity will now become a wholly owned subsidiary of VDM Group. VDM Group will acquire the remaining interest in Cape Crushing for $2.5 million, $2 million of which will be paid in cash and $0.5 million will be via the issue of 1,052,632 fully paid ordinary shares at an issue price of $0.475 each. The acquisition of the minority interest is effective from 1 January 2010.
Cape Crushing enjoys an industry leading safety record servicing a number of blue chip clients throughout Western Australia. Its operations have enjoyed strong growth in recent years, a trend likely to continue as it continues to search for and win larger sized longer term sustainable projects. With new mining projects being developed in Western Australia it was considered timely to consolidate Cape Crushing within the VDM Group to fully utilise the expertise, assets and strength of the whole Group to win, build and add to our current blue chip client contracts list. Cape Crushing enters 2010 with a solid order book and an enviable safety record. It’s business is spread evenly over crushing and screening, earthworks and mine site services at various gold, nickel and iron ore mines throughout Western Australia.
VDM Group is structured into three operating divisions; namely, Consulting, Construction, and Resources and Infrastructure. Within each division there are specialised companies offering a comprehensive range of services which include civil and mechanical construction, civil marine construction including drill and blast, armour rock production and placement, mineral process plant design and construction, crushing and earthmoving, commercial, industrial and residential building construction, structural steel fabrication etc. These services enable VDM Group to deliver a one-stop design, construction and project management services to its clients.