Mitchell Services to acquire Deepcore Holdings for $32m

November 2019

Mitchell Services (ASX: MSV) will acquire privately-owned Deepcore Holdings Pty Ltd for $32 million under a binding agreement announced this morning, with Mitchell claiming the combined entity will be one of the largest pure play drilling service companies in the country.

In consideration for the acquisition, Mitchell will pay $15 million in cash and issue a further 250 million shares at $0.068 each. According to Mitchell, the purchase is based on Deepcore’s net debt at settlement being no more than $12 million.

Overall, the equity acquisition price for Deepcore is $32 million, but with the debt included – the acquisition gives Deepcore an enterprise value of $44 million.

Read the full article https://smallcaps.com.au/mitchell-services-acquisition-deepcore-holdings-32m/