NRW Holdings (ASX:NWH) confirms takeover discussions with BGC Contracting

NRW Holdings (ASX:NWH) has confirmed media reports that it has been in discussions with Perth-based mining and construction company BGC Contracting regarding a potential acquisition.

NRW confirms it has been selected as the preferred bidder in the sale of BGC Contracting subject to final documentation and a number of conditions.

NRW says there is significant merit in the acquisition of BGC Contracting and would only enter into a deal on terms that deliver appropriate value for NRW shareholders, including a requirement that any transaction be EPS accretive.

In relation to funding the company says it has multiple funding options available to it and furthermore any transaction would include the assumption of outstanding equipment finance obligations of approximately $190M, which is well supported by a considerable fleet of major mobile equipment.

Shares in NRW Holdings (ASX:NWH) are trading 1.33 per cent higher at $2.28.

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Source: Finance News Network