- Mining service company Mastermyne (MYE) enters an agreement to acquire 100 per cent of the shares in PYBAR Mining Services
- PYBAR is a nationwide provider of mining services with its core capability in metal underground hard rock mining
- The expected equity purchase price of the acquisition is roughly $47 million consisting of both cash and scrip payments
- To coincide, Mastermyne has proposed a name change to Metarock Group which is subject to transaction completion and shareholder approval
- Mastermyne ends the day 9.43 per cent in the green with shares trading at $1.16
Mining service company Mastermyne (MYE) has entered an agreement to acquire 100 per cent of the shares in PYBAR Mining Services.
PYBAR is a nationwide provider of mining services with its core capability in metal underground hard rock mining.
It was established in 1993 and since then has grown into one of Australia’s larger underground mining contractors.
Under the agreement, Mastermyne will continue to operate as an independent business with its current management team continuing to lead the day-to-day operations.
PYBAR Executive Chairman Paul Rouse is excited to be joining forces with Mastermyne.
“We are very excited to be joining the Mastermyne group and working with the Mastermyne team to continue to grow the PYBAR business,” Mr Rouse said.
“We view this as a unique opportunity to bring two quality businesses together, that are highly complementary to one another, and to accelerate the opportunities that lay ahead of us.”
The expected equity purchase price of the acquisition is roughly $47 million once debt items are considered.
This consists of a cash consideration of $23.5 million and scrip equating to roughly 23.2 million Mastermyne shares at a value of $23.5 million.
Of the $23.5 million cash payment, $11.75 million is payable on completion of the transaction while the remaining $11.75 million is due on the first anniversary of completion of the transaction.
Upon completion, PYBAR vendors will become shareholders in Mastermyne, owning roughly 23.2 million shares equating to 17.7 per cent.
Mr Rouse will hold 10.7 per cent and will join the Mastermyne board as a Non-Executive Director.
Mastermyne Managing Director and CEO Tony Caruso commented on the acquisition.
“In line with our stated hard rock growth strategy, the PYBAR Mining Services Acquisition is an exciting opportunity for Mastermyne to accelerate growth and become a leading national mining services organisation with material scale,” Mr Caruso commented.
“With this acquisition we are building a diversified underground mining services business providing specialised underground services directly linked to production.”
To coincide with the change, Mastermyne has proposed a name change from Mastermyne Group to Metarock Group.
This new name will be established as the brand for the combined companies.
The name change is subject to the completion of the transaction and shareholder approval.
Mastermyne has ended the day 9.43 per cent in the green with shares trading at $1.16 in a $113.8 million market cap.