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- Metarock Group confirms the execution of a binding Share Sale and Purchase Agreement (SPA) to sell its entire interest in the PYBAR business (PYBAR) to Thiess
- Transaction amounts to A$65 million based on enterprise value
- MYE last traded at 21c, at 1:40pm AEDT
Metarock Group (ASX:MYE) has confirmed the execution of a binding Share Sale and Purchase Agreement (SPA) to sell its entire interest in the PYBAR business (PYBAR) to Thiess Pty Ltd, a wholly owned subsidiary of Thiess Group Holdings (Thiess).
PYBAR is ultimately an underground mining contractor; Metarock shares jumped 10% on the news pushing the stock to 21c in late afternoon trades.
The total consideration for the deal amounts to A$65 million based on enterprise value.
Metarock expects to receive $36.3 million in net cash proceeds after accounting for PYBAR’s outstanding debt and estimated transaction costs.
“The agreed transaction represents a great outcome for Metarock shareholders,” Metarock chief Jon Romcke said.
“The purchase consideration represents compelling value for the PYBAR business, which will continue to grow as part of Thiess’ global mining services platform,” Metarock chief Jon Romcke said.
Under the terms of the SPA, all PYBAR employees, including senior management will transition with the business.
Thiess plans to continue operating under the PYBAR brand post-Transaction, in order to retain its workforce, ongoing operations and its expansion in the underground hard rock contracting sector.
“The transaction significantly strengthens Metarock’s balance sheet and is expected to return the Company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining and MyneSight businesses,” Romcke added.
The completion date is expected April 30, 2024, contingent upon meeting specified conditions.
MYE shares were up 10.5%, last traded at 21c, at 1:40pm AEDT.
