Ausdrill Limited (ASL) will go ex dividend on 19/10/2009. The current dividend payment is 6 cents and it is 100% franked. The record date is 23/10/2009 and the dividend will be paid on 6/11/2009. Based on the full year payment the dividend yield is 5.9%.
*Current Yield: 3.2% Franking: 100% DRP Discount: 0%
*Yield has been calculated on the closing price on the 25/9/2009. Current yield is based on the current dividend payment only.
The Directors of Ausdrill Limited (ASL) and Brandrill Limited (BDL) are pleased to today announce a proposed merger of the two businesses, under which Ausdrill will issue shares to Brandrill shareholders in exchange for all of the shares in Brandrill. The combined group will create a leading integrated mining services company, with a strong and complementary range of Australian and international business operations. This larger, more diverse company will have a better ability to serve existing clients and a greater financial capacity to fund future growth. The merger will allow both Ausdrill and Brandrill shareholders to benefit from the expected growth in a stronger combined core business in Australia and from expansion of Ausdrill’s African operations.
Ausdrill’s Chairman, Terry O’Connor said today: “This is a logical and compelling merger resulting in a stronger combined entity, benefiting both Ausdrill and Brandrill shareholders. The combined group brings together two established and experienced mining services operators, and provides benefits of increased scope and scale. We have a positive outlook for the industry, and look forward to continuing to grow our business for the benefits of our shareholders, our enlarged staff and our customers.” Brandrill’s Chairman, Vince Pendal said: “We believe that the combination of Brandrill with Ausdrill’s businesses will create considerable additional value and this is expected to provide accelerated upside for our shareholders. This merger is the right agreement with the right company.”
Under the terms of the merger,eligible Brandrill shareholders will receive one Ausdrill share for every 14.5 Brandrill shares held at the record date for the merger (Merger Consideration). The merger will be implemented via a scheme of arrangement and is subject to a number of conditions, including Brandrill shareholder approval. Merger terms equate to a value of 9.5 cents per Brandrill share, representing an attractive premium of 77% to the volume-weighted average price (VWAP) of 5.4 cents per share for the 30 days prior to the Announcement Date; and 44% to the closing price of 6.6 cents per share on 14 August 2009.
