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- Veris (VRS) enters an agreement to acquire a 49 per cent interest in Wumara Group
- A share sale and purchase agreement with shareholders of the indigenous-owned company will see Veris pay $180,000 in cash and issue $20,000 in shares
- As a result of the agreement, Wumara Group has been awarded a contract by CAF Rail Australia to provide surveying and associated services on the NSW Government’s $2.4 billion Parramatta Light Rail project
- Settlement of the acquisition is expected to occur by July 15, 2021
- Veris was trading flat at 7.9 cents at 12:20 pm AEST
Veris (VRS) has entered into an agreement to acquire an almost 50 per cent interest in Wumara Group.
A share sale and purchase agreement with shareholders of solely indigenous-owned land and construction surveying company EMFOX, trading as Wumara Group, has seen Veris acquire a 49 per cent share.
Veris will pay $180,000 in cash and issue $20,000 in shares for the acquisition, at an issue price of 30-day volume-weighted average price of Veris’ shares immediately prior to settlement.
The agreement gives Wumara Group the opportunity to work in alliance with Veris’ wholly owned subsidiary, Veris Australia, which provides spatial data services. The agreement aims to help develop and grow Veris’ surveying business, while providing employment, education and economic opportunities to indigenous Australians.
Under the agreement, Wumara Group will continue to be majority owned by indigenous shareholders and will be led by Managing Director, Dylan Frank.
Following the agreement, Wumara Group was awarded a contract by CAF Rail Australia to provide surveying and associated services on the NSW Government’s $2.4 billion Parramatta Light Rail project.
The services will generate over $1 million in revenue for Wumara Group over a one-year contract term, with the option to periodically extend the contract. Under an alliance arrangement, Veris Australia will be working with Wumara Group to service the contract.
The company says being awarded the CAF contract demonstrates Wumara can offer an Indigenous surveying and spatial solution to clients, backed by Veris’ experience, resources and financial capacity.
Additionally, it will also allow Veris to build a diverse and inclusive work culture, following the company’s initial Reconciliation Action Plan (RAP).
“Having previously launched our first Reconciliation Action Plan, this is another exciting next step as we continue the company’s journey of reconciliation that is built on mutual respect,” Veris Chairmano Karl Paganin said.
“It is also timely to be making this announcement during NAIDOC Week, where we celebrate the history, culture and achievements of Aboriginal and Torres Strait Islander peoples.”
Settlement of the acquisition is expected to occur by July 15, 2021.
Veris was trading flat at 7.9 cents at 12:20 pm AEST.
