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Drilling services company Boart Longyear (“ASX:BLY), which was first floated as one of the largest IPO’s in Australian history at $2.35 billion, is now set to exit the market with an announcement on Friday that its securities would be suspended from close of the market.
This followed news that Boart Longyear had confirmed a Plan of Arrangement in which all of their issued and outstanding shares would be acquired by an entity owned by American Industrial Partners, as part of a takeover of the same which was first announced in December.
The takeover was done and dusted for $534 million (or US$371), a far cry from the Utah-based drilling company’s initial IPO upon joining the Australian stock market in 2007.
After this illustrious start, Boart Longyear was hit by strong headwinds during the global financial crisis, influencing both its share market value and ability to retain workers, and received a bailout package of US$342 million in 2015, led by private equity company Centrebridge Partners, which then came to hold almost 50 percent of Boart Longyear. They, and other owners, confirmed interest in the takeover bid by American Industrial Partners late last year.
On Friday, the company announced that all conditions for the Plan of Arrangement transaction had been satisfied.
