AUSTRALIA – Swedish-based drilling supplier SANDVIK is offering Cdn$89 million to acquire Australian company SDS CORPORATION, which is a world leader in the design and manufacture of drilling equipment for mineral exploration. Among other conditions, the acquisition requires approval from shareholders representing at least 90% of SDS’s shares.
The offer is being made through Sandvik’s wholly owned Australian subsidiary SANDVIK MINING AND CONSTRUCTION AUSTRALIA, and corresponds to Cdn$0.96/share in SDS, representing a premium of approximately 32% per share compared with the average weighted share price of the previous three months.
The SDS board has unanimously recommended the shareholders to accept the offer. SDS (www.SDScorp.com.au) had sales of Cdn$96.7 million in fiscal year 2005 and has reported sales of Cdn$59.5 million during the first half of the 2006 fiscal year. The company has approximately 500 employees.
The Sandvik annual meeting will be held on May 2, 2006. Shareholders wishing to participate should complete the “notification for shareholders” form at www.Sandvik.com.