Southern Cross Electrical Engineering Limited · ASX:SXE
Southern Cross Electrical Engineering — Merger or Acquisition (June 2016)
15 slides from Southern Cross Electrical Engineering's merger presentation, Jun 9, 2016
Slide 1: Investor Presentation: Acquisition of Datatel Communications Pty Limited
For personal use only Investor Presentation Acquisition of Datatel Communications Pty Limited 9 June 2016
Slide 2: Transaction overview
Transaction overview For personal use only SCEE has signed a binding agreement to acquire 100% of the shares in Datatel Communications Pty Limited Summary Datatel is a WA based award-winning electrical & communications contractor with significant exposure to the roll out of the NBN since 2013 Datate
Slide 3: Market entry
Market entry For personal use only “The acquisition of Datatel is a significant and immediate market entry into the Telecommunications sector and provides SCEE with a credible platform which can be leveraged to enter other geographic markets.” Graeme Dunn MD & CEO, SCEE 2
Slide 4: Datatel overview
Datatel overview For personal use only FTTP FTTB • Datatel Communications Pty Ltd established by Paul Johnson and Wayne Hogan in 1998 • Has built a significant presence in the communications and telecommunications sectors in WA FTTN HFC • Developed relationships with key lead contractors in the deli
Slide 5: Datatel operations and financial
Datatel operations and financial For personal use only • Datatel has over 180 staff including over 150 operational personnel • Has invested significant resources in establishing an appropriate safety culture and procedures. It holds an AN/NZS 4801 accreditation from Bureau Veritas • Has established
Slide 6: Datatel history
Datatel history For personal use only Datatel awarded Datatel awarded contract Datatel awarded preferred Employer of the with Fulton Hogan for NBN contractor status for Health Datatel awarded year by Group related works Corporate Network, Curtin NECA Excellence University and the Training Australia
Slide 7: Datatel senior management
Datatel senior management For personal use only Wayne Hogan Hanif Ibrahim Paul Johnson Operations Director & Founder Executive General Manager Operations Director & Founder NBN Project Manager & IT Development Project Manager & Technical Assistance Strategic Management ■ Paul Johnson is a certified
Slide 8: Strategic rationale
Strategic rationale For personal use only SCEE is an electrical contractor – it will create shareholder value by: • transitioning to a sustainable resources business; and • by leveraging its core skills and balance sheet strength, to grow its business through expansion into adjacent and complementar
Slide 9: Telecommunications
Telecommunications For personal use only The telecommunications market is a strong, robust sustainable sector, with growth being driven by technological innovation and consumer demand for more data and faster connections. Construction expenditure forecast at a 10.4% CAGR over coming years. NBN roll
Slide 10: Commercial, education and health
Commercial, education and health For personal use only Opportunity to leverage Datatel’s presence in sectors SCEE not currently operating in: • Commercial team of more than 40 electricians, technicians and apprentices including a Registered Communications Distribution Designer and two Certified Data
Slide 11: Widening SCEE's resources services offering
Widening SCEE’s resources services offering For personal use only As the strong resources construction phase slows SCEE is diversifying its revenue streams by growing its presence in the sustaining capital and maintenance market as production commences. SCEE already has breadth and depth in this mar
Slide 12: Integration track record
Integration track record For personal use only SCEE has the capability and capacity to successfully integrate and grow the business of Datatel: • Track record of successfully integrating previous acquisitions (KJ Johnson into SCEE Infrastructure and Oceanic as East Coast platform) • Strong balance s
Slide 13: Transaction Terms & Timetable
Transaction Terms & Timetable For personal use only SCEE has agreed to acquire the issued capital of Datatel subject to the terms below: Initial Consideration $5.6m cash and $0.6m new shares in SCEE Deferred Consideration Up to $1.4m in FY17 and $1.03m in each of FY18 and FY19 upon achievement of fi
Slide 14: Conclusion
Conclusion For personal use only The acquisition of Datatel allows SCEE to strategically leverage its core skills and its balance sheet strength into complementary sectors and new geographies by providing: • A significant and immediate entry into the communications and telecommunications sectors • S
Slide 15: Appendix – Detailed transaction terms
Appendix 1 – Detailed transaction terms For personal use only Structure Acquisition of 100% of the share capital of Datatel Communications Pty Ltd Initial Consideration $6.2m payable on completion (split 90 % cash and 10% equity) Deferred Consideration $1.4m payable on achieving at least $3.1m
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