PRESS RELEASE: Master Drilling said the acquisition of South Africa-headquartered Atlantis Group will further strengthen its 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 supporting Atlantis' current empowerment partner, Laone Mining and Engineering. The deal will see Master Drilling providing three boring machines to Laone that it will use to service an existing raise-boring contract that Atlantis had with Cullinan mine.
The purchase consideration of R107.5 million (US$ 6.9 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.