Business
Foraco International SA to acquire 100% of Adviser Drilling SA a leading drilling contractor in Latin America
Foraco International SA to acquire 100% of Adviser Drilling SA a leading drilling contractor in L...
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\n\nTORONTO and MARSEILLE, France, Mar. 9, 2010 (Canada NewsWire Group) -- /CNW/ -- Foraco International SA (the \"Company\" or \"Foraco\"), a leading global provider of diversified drilling services, today announced it has entered into a binding agreement with all of the shareholders of Adviser Drilling SA (\"Adviser\") from Chile, to acquire 100% of the outstanding shares of Adviser SA.Adviser provides diamond and reverse circulation drilling services for major and junior mining companies in Chile, Argentina and Mexico since 2005. Headquartered in Santiago Chile, Adviser has subsidiaries in Argentina, Mexico and Peru. Adviser's fleet consists of 50 modern diamond and reverse circulation drill rigs as well as ancillary equipment, supported by skilled managers and workers. Adviser generated approximately 59 million USD revenue in 2009.The terms of the proposed transaction include:- cash consideration of 5.35 million USD upon closing,- 14,935,750 shares of Foraco (representing 20% of Foraco's post closingshare capital),- Up to 4,756,539 warrants to acquire shares of Foraco, exercisable aftertwo years following closing at no additional consideration, or, at theoption of the vendors, a cash consideration of 1.97 USD per warrant,- A price adjustment of 5.35 million USD depending on Adviser's 2010financial performance, to be paid in 2011.Closing of the transaction is scheduled to occur in May 2010 and is subject to completion of certain conditions precedent, including approval of the TSX and the approval of the shareholders of Foraco at a meeting of its shareholders scheduled to be held on May 11, 2010.Adviser's present managers will continue managing and developing Adviser.\"This is a major step forward for Foraco to continue building a world class drilling services company\" said Daniel Simoncini, Chairman and Chief Executive Officer of Foraco. \"This acquisition will allow us to improve significantly our global range of services offered to our Customers and will develop significant business synergies in the near future.\"Jean-Pierre Charmensat, co-CEO and Chief Financial Officer added, \"We are excited about the combination of Adviser's impressive track record, good reputation, energetic management and modern fleet when supported by Foraco's technical expertise and global strength will allow our Company to capitalize on Latin ...