Sandvik moves to complete SDS takeover

SWEDEN’s Sandvik Group said this morning it had taken control of more than 90% of shares in Australian-listed drilling equipment company SDS. The international high-technology company now plans to move towards compulsory acquisition of remaining SDS shares.
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At 9am Sydney time today, Sandvik had 92.08% of voting power in SDS. Sandvik’s offer will close at 7pm tonight, Sydney time. Following the close of the offer, a formal compulsory acquisition notice will be sent to those SDS shareholders who did not accept the offer.

SDS’ board has unanimously recommended the offer of $A1.14 in cash for each SDS share, in the absence of a higher bid. The figure is a significant premium to the trading price over recent months.

The Sandvik offer was made in early April. At the time, Adelaide-based SDS had been searching for seven months for a suitable business partner to take the company to the next stage of its development.

SDS managing director Fred Moir said last month that the Sandvik offer was an exceptional opportunity for both SDS and its shareholders.

“We believe this is an attractive offer for shareholders of SDS and represents excellent value for our growing company,” he said.

“We have been looking for a strategic partner with the resources and global presence required to take our company to the next level. Sandvik is a progressive global company and this agreement provides exciting growth prospects for our business, employees and shareholders.

“The board at SDS therefore urges our shareholders to accept this offer subject to there being no superior proposal.”

Moir said SDS staff, expertise, products and services would remain an integral component of Sandvik’s future vision for the company.

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