The Federal Court of Australia has approved the Scheme of Arrangement giving effect to the recapitalisation of mining equipment rental business, Emeco Holdings Ltd
(ASX:EHL), and its merger with Andy's Earthmovers and Orionstone Holdings.
Emeco says the Court orders will be lodged with ASIC on Thursday, at which time the Scheme will become legally effective.
The merger is expected to complete on 31 March 2017.
The rights issue for existing shareholders is expected to launch on 21 March, and complete in mid-April 2017.
Emeco says its priorities are to reduce debt and increase interest coverage – and the merger will provide it with an expanded fleet, with the average machine age reduced by 25%.
Yesterday, Emeco shares closed 3.8% lower at 8 cents.
