ELECTRICAL and instrumentation company B&W has acquired earthing and lightning protection company Pontins for R19,2m, which it hopes will augment its existing electrical contracting business with a complementary niche service.
The AltX-listed company said yesterday the acquisition offered numerous operational synergies.
The company said the acquisition was expected to open up additional opportunities for the existing business as B&W and Pontins already worked together on similar projects.
B&W’s involvement was towards the end of a project’s lifecycle, while Pontins would get involved at the very early stages.
B&W said R12,9m of the total purchase consideration would be settled from its cash resources, and the other R6,3m would be settled by issuing 4373959 ordinary shares to Pontins at an issue price of R1,44 each, the closing price on the effective date.
In terms of restraint of trade agreements, a further R1m had been paid to each of the two shareholders of Pontins.
A condition of the acquisition is a written final settlement of any claims that beneficiaries of the Pontins black economic empowerment trust have against the trust, so that the trust can be wound up.
According to the unaudited pro forma financial effects of the acquisition, B&W’s earnings per share would increase 3% to 30,5c from 29,6c, while headline earnings per share were expected to rise 2,7% to 30,6c (29,8c).
Net asset value per share was expected to increase marginally, by 1,4% to 79,1c from 78c.
However, tangible net asset value per share would drop 5,5% to 73,7c from 78c.
B&W reported an 11,7% rise in revenue to R502,8m for the year to August. Operating profit was steady at R75,6m.
mokopanelet@bdfm.co.za