Provider of specialist services to the underground coal mining industry, oil, gas and maintenance sectors in Australia, WDS Ltd
(ASX:WDS), has announced a $45.7 million capital raising and the acquisition of Titeline Energy.
The raising comprises of a placement to institutional investors of approximately $18.2 million and a one for seven non-renounceable $27.5 million entitlement offer.
Both the institutional placement and entitlement offer will be conducted at the same offer price of $1.70 a share, an 18.7 per cent discount to the company’s last closing price on September 28.
The proceeds will be used to fund the cash component of the Titeline acquisition, to contribute to expansionary capital expenditure for new drilling capacity and to contribute to working capital needs for future projects and pursue future strategic opportunities in the coal seam gas sector.
WDS has also entered into a share sale agreement to acquire all the issued shares in Titeline Energy for around $29.3 million.
CEO Gareth Mann says WDS believes that the acquisition of Titeline positions the company to broaden its service offering and capitalize on our position in field activities in the growing coal seam gas market.
WDS profits have been increasing year on year for the past four years.
