Industrea directors recommend $470m GE bid
US giant General Electric has lodged a $1.27 a share bid for diversified mining products and services company Industrea, with the offer pitched at a 48% premium to the latter’s previous closing price.
GE’s bid is by way of a scheme of arrangement. Industrea’s directors have said the bid is “in the best interests of Industrea shareholders” in the absence of a higher offer and provided an independent expert confirms the terms of the deal.
Industrea comprises four divisions involved in the global provision of mining products and services.
They include open cut collision avoidance systems, underground methane gas draining directional drilling systems and services, mobile asset tracking and driver safety performance road tools, and explosion protected diesel and electric powered vehicles for underground coal mining applications.
Industrea also has a mining contracting business, called Industrea Mining Services (IMS), which it will try to sell separately to the GE deal.
The Hon David Beddall, chairman of Industrea, said: “This is an attractive offer which is at a significant premium to the current share price. The Industrea board believes that the offer represents fair value. We recommend unanimously that shareholders vote in favour of the Scheme, in the absence of a superior offer and subject to the independent expert concluding that the proposal is in the best interests of shareholders.”
Robin Levison, managing director and CEO of Industrea, said: “GE’s capital, technical expertise and global customer relationships are expected to accelerate the growth of Industrea’s businesses, building on the company’s strong reputation for products and services that enhance the safety and productivity of mining companies. New career opportunities will open up for our people, and customers will be able to benefit from increased resources devoted to product development and innovation."
Industrea says it intends to commence an orderly sale process for IMS, with the goal of realising additional value over the $1.27 for shareholders. If a sale of IMS is not brought to a conclusion, and there is no guarantee any sale will occur, then GE will retain IMS as part of the Proposal.