Master Drilling acquires Atlantis Group of Companies and Subsidiaries
Strengthening of diversified geographic footprint continues
Master Drilling, the world leader in the raise bore drilling services industry, announced that it has entered into agreements to acquire the businesses of the Atlantis Group (“Atlantis”), a South African headquartered multinational mining contracting company, specialising in raise boring, blind boring and other drilling services.
The acquisition of Atlantis Group will further strengthen Master Drilling’s international footprint and augment its pool of skills and expertise, especially in India, Brazil and Zambia where both Master Drilling and Atlantis have active raise boring businesses. In South Africa, the acquisition also comprises a mining suppliers and parts manufacturing business.
Commenting on the transactions, Danie Pretorius, Master Drilling’s CEO, said: “The acquisition of Atlantis offers us a great opportunity to increase our presence and capabilities in key geographies where we already have a presence by assuming responsibility for Atlantis’ contracts and operations. In addition, we expect that the deal will have a positive effect on earnings whilst also reducing our capex requirement for the year.”
As part of the transactions, Master Drilling has also committed to support Atlantis’ current empowerment partner, Laone Mining and Engineering (“Laone”). The deal will see Master Drilling providing three boring machines to Laone that they will use to service an existing raise boring contract that Atlantis had with Cullinan Mine.
“This transaction also provided a great opportunity to support an ambitious and driven 100% black owned engineering business with the appetite to make their mark in the raise boring industry,” added Pretorius.
The purchase consideration of R107,5 million will be settled through existing resources over the next 12 months. The transaction is also subject to various conditions precedent, including various statutory and regulatory approvals.
Master Drilling recently reported satisfactory results for the interim period ended June 2018, supported by its successful strategy of geographic, sector and commodity diversification.
Su-Marie Lemmer email@example.com +27 18 771 8100
Instinctif Partners (Media and Investor Relations)
Monica Ambrosi Monica.Ambrosi@instinctif.com +27 82 659 9226
Frederic Cornet Frederic.Cornet@Instinctif.com +27 83 307 8286
NOTES TO EDITORS
About Master Drilling
“We challenge the status quo to provide our clients with specialised, adaptive and integrated drilling solutions.”
Master Drilling was established in 1986 and listed on the Johannesburg Stock Exchange in 2012. The company delivers innovative drilling technologies and has built trusted partner relationships with blue-chip major and mid-tier companies in the mining, civil engineering and building construction sectors across various commodities worldwide.
The Master Drilling business model of providing drilling solutions to clients through tailor-made designs coupled with a flexible support and logistics chain makes it the preferred drilling partner throughout the lifecycle of projects from exploration to production and capital stages.