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- Mining contractor NRW Holdings is raising another $10 million to fund its purchase of construction company BGC
- The share purchase plan is in addition to the $120 million placement NRW completed late last month, which also raised funds for the BGC buy
- Shareholders can buy up to $15,000 worth of shares at a 7.47 per cent discount from the company’s three-day average share price
- The ASX 200-lister’s share price closed 1.31 per cent in the green, with shares trading for $3.10 each
Mining contractor NRW Holding’s (NWH) share price is staying in the green today after opening a $10 million share purchase plan last Friday.
Raised funds will go towards financing NWH’s purchase of building and construction company BGC.
This $10 million is in addition to late last month’s $120 million raise which was also launched to secure funds for the BGC buy.
The ASX 200-lister has recorded some movement on the Australian market, reaching a high of $3.15 per share at midday. However, this has simmered to close at $3.10 each after a 1.31 per cent boost.
Shareholders will have the opportunity to buy up to $15,000 worth of shares at $2.85 each. The share purchase plan will remain open until January 2, 2020. This price marks a 7.47 per cent discount from the company’s three-day average trading price.
Buying BGC gives NRW full control of the contractor which operates in three core sectors: resources, energy and infrastructure. BGC’s contract portfolio currently sits around $1.5 billion with $700,000 worth to be delivered in the 2020 financial year.
Additionally, following the purchase, NRW Holdings expects its revenue will reach $850 million and earnings before interest, tax, depreciation and amortisation will hit around $100 million.
