Ausenco shares surge on possible offer

PERTH (miningweekly.com) – The share price of project house Ausenco increased by nearly 12% on Monday after the company became the focus of an unsolicited, indicative and non-binding proposal from shareholder Resource Capital Fund (RCF VI).

RCF VI was proposing to privatize Ausenco by way of a scheme of arrangement.

While details of the proposal was not forthcoming, Ausenco said that the transaction was subject to a number of conditions, including due diligence and entrance into formal transaction documentation.

The directors of Ausenco have now formed an independent board committing to consider the proposal before making any recommendations to shareholders.

Committee chairperson George Lloyd said that no view had yet been formed on the merits of the proposal and whether it was in the best interest of shareholders.

“No assurances can be given that the proposal or any other transaction will proceed,” he added.

Ausenco shares were trading at a high of 33c on Monday, up from an opening price of 28c each.

RCF VI in April this year replaced banks ANZ and NAB as Ausenco’s sole and primary secured lender, after the two banks agreed to the assignment of the company’s existing bank borrowings and the transition of bonding facilities to RCF VI.

In February this year, Ausenco also finalised terms of a $16.5-million convertible debt and binding facilities packae with RCF VI, which included a $6.5-million unsecured convertible debt facility which would mature at the end of December 2018.