lincoln crowne engineering mining services 25 october 2013[1]
DESCRIPTION
Lincoln Crowne & Company Engineering & Mining Services Mergers & Acquisitions Report for the Australian market for the week ended 25th october 2013. developments during the week included a number of small deals, and deals by Transfield Services and MonadelphousTRANSCRIPT
25 October 2013 WWW.LCC.ASIA
IMPORTANT DISCLAIMER This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
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M&A Rumour and Activity
The Australian market defied falls on other Asian markets to end the week up with the S&P/ASX 100 closing at 4467 points.
The Australian dollar ended the week up against the US dollar after a report indicated strengthening in China's
manufacturing sector.
The downturn for mining services providers continues to be felt with creditors of ASX listed Allmine Group Limited
(www.allminegroup.com) voting to wind up the company. Accommodation provider Nomad (ASX:NOD) has placed its
Queensland business (Nomad Eastern States) into ‘care and maintenance’. Nomad plans to focus its remaining resources
on its Western Australian focused McGrath Homes business and remaining rental assets of Karratha Village and Derby
Housing, WA.
Three other M&A announcements this week.
Monadelphous (ASX:MND) has completed the sale of its non-core aviation support services business, Skystar to Menzies
Aviation (www.menziesaviation.com) for $10M.
As discussed below, the New Zealand joint venture between Transfield (ASX:TSE) and Worley Parsons (ASX:WOR) has
been unwound with Transfield selling out to Worley. Transfield is also selling its 49% share in its Transfield Mannai facilities
management business in Qatar to existing partner Mannai International.
News Headlines and Key Sector Developments
Ticker News/Event Ticker News/Event
CGH Entered into a marketing joint venture agreement with Canadian oil and gas automation business True North Automation. The joint venture intends to jointly develop oil and gas technology market opportunities in Australia and bulk commodities mining, rail and integrated operations technology opportunities in Canada
GCS Awarded contracts on two prominent Perth projects with a combined value of approximately $15.5M
DSB Has been advised by Boral that mining operations at Boral’s Berrima Colliery will be transitioned into “care and maintenance”. Delta SBD was appointed to manage Berrima in 2009 until 30 June 2015 and now will continue to manage the care and maintenance of the colliery
HDX Confirmed that a line of HDX shares held by JSW Australia Pty Ltd shareholders has been sold to a strategic investor. The vast majority of remaining HDX shares held by those JSW shareholders are subject to a 12 month escrow
EAL Successfully completed a placement to institutions and professional investors of 7,300,000 shares at $0.69/share to raise $5,037,000
TSE Sold its 50% share in its Transfield Worley New Zealand joint venture to existing partner Worley Parsons for $30M. TSE is also selling its 49% share in its Transfield Mannai facilities management business in Qatar to existing partner Mannai International
EHL Amended two financial covenants under its $450M Senior Debt Facility. EHL remains in full compliance with its current covenants. Amendments to the Gearing Ratio (Gross Debt: EBITDA) and Interest Cover Ratio (EBITDA: Net Interest) covenants were sought to better enable EHL to pursue a debt reduction strategy in FY14
Source: Capital IQ, Thomson Reuters, LCC research
25 October 2013 WWW.LCC.ASIA
IMPORTANT DISCLAIMER This report has been prepared by Lincoln Crowne & Company Pty. Limited ("LCC"). The research is based on information obtained from sources believed to be accurate and reliable. LCC does not guarantee the accuracy, reliability, completeness or suitability of any such information and makes no warranty, guarantee or representation, expressly or impliedly about this research. LCC accepts no obligation to correct or update the information. No opinion or recommendation is made within this research. This report is not intended to be, nor should it be relied on, as a substitute for professional advice. This report should not be relied upon as the sole basis for any investment decision or planning, and LCC does not accept any responsibility on this basis for actions made.
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Market Cap Open Price Close Price Week High Week Low Weekly Volume EV/ EV/
Ticker (AUD Million) (AUD) (AUD) (AUD) (AUD) % Change Trend EBITDA EBIT
AJL 342 1.34 1.28 1.34 1.15 ▼ -4.5% NM NMASL 479 1.45 1.54 1.62 1.41 ▲ 5.9% 3.4x 6.1xAAX 217 1.72 1.76 1.78 1.71 ▲ 2.3% 5.3x 6.9xANG 307 4.01 4.20 4.30 4.01 ▲ 4.7% 7.2x 8.7xBLY 207 0.44 0.46 0.47 0.42 ▲ 4.6% 3.9x 11.5xBKN 1,125 5.99 6.65 6.83 5.98 ▲ 11.0% 8.7x 12.9xBYL 41 0.39 0.37 0.39 0.37 ▼ -5.1% 2.1x 3.6xBOL 94 0.18 0.20 0.21 0.18 ▲ 11.1% 3.9x 8.5xBSA 30 0.14 0.13 0.14 0.13 ▼ -3.7% 3.9x 11.6xCDD 974 6.60 6.74 6.82 6.46 ▲ 2.1% 8.3x 10.1xCGH 141 0.46 0.45 0.46 0.43 ▼ -3.3% 3.0x 6.2xCLO 1,143 1.47 1.47 1.48 1.46 ▼ -0.1% 7.0x 7.2xCOF 59 0.22 0.23 0.23 0.22 ▲ 4.5% 7.5x 13.7xDCG 423 2.58 2.51 2.60 2.43 ▼ -2.7% 5.5x 6.2xDSB 20 0.46 0.43 0.48 0.43 ▼ -6.5% 2.4x 3.3xDOW 2,143 4.98 4.93 5.17 4.85 ▼ -1.0% 3.9x 7.0xEAL 91 0.72 0.76 0.78 0.71 ▲ 5.6% 7.8x 9.1xEGN 50 0.15 0.16 0.16 0.15 ▲ 6.7% NM NMEHL 195 0.28 0.34 0.36 0.26 ▲ 21.8% 3.5x 10.2xEVZ 12 0.06 0.06 0.06 0.06 ▲ 5.5% 7.9x 10.9xFWD 208 3.62 3.44 3.65 3.42 ▼ -5.0% 6.1x 10.2xFGE 400 4.95 4.64 5.14 4.62 ▼ -6.3% 3.0x 3.8xGCS 99 0.54 0.58 0.58 0.51 ▲ 7.4% 3.9x 6.2xGNG 103 0.67 0.69 0.69 0.62 ▲ 2.2% 8.0x 8.7xHDX 66 0.31 0.32 0.32 0.29 ▲ 1.6% 4.9x 7.0xIMD 176 0.78 0.84 0.86 0.77 ▲ 7.1% 4.7x 6.2xLEI 5,979 17.40 17.73 18.10 17.39 ▲ 1.9% 3.6x 7.6xLCM 136 1.92 1.96 2.24 1.92 ▲ 2.3% 8.8x 9.3xLYL 192 4.54 4.94 4.94 4.50 ▲ 8.8% 5.2x 5.5xMLD 445 2.59 2.58 2.62 2.44 ▼ -0.4% 3.6x 5.4xMAH 201 0.14 0.16 0.17 0.14 ▲ 14.3% 1.5x 3.1xMYE 83 1.10 1.10 1.10 1.01 — 0.0% 3.5x 4.9xMIN 2,122 11.56 11.40 11.79 11.32 ▼ -1.4% 6.5x 9.9xMCE 65 0.72 0.69 0.76 0.68 ▼ -4.9% 6.1x 80.4xMND 1,727 17.99 18.71 19.00 17.93 ▲ 4.0% 6.4x 7.3xNMS 67 0.05 0.04 0.05 0.04 ▼ -28.0% 68.3x NMNOD 21 0.10 0.08 0.10 0.08 ▼ -22.7% 1.7x 2.4xNWH 396 1.41 1.42 1.47 1.40 ▲ 1.1% 2.9x 4.0xOTC 19 0.10 0.10 0.11 0.10 ▼ -4.0% 2.1x 3.0xPRG 342 2.79 2.89 2.89 2.74 ▲ 3.6% 6.5x 8.0xRCR 518 3.60 3.80 3.85 3.60 ▲ 5.6% 7.5x 10.1xRQL 47 0.20 0.19 0.21 0.19 ▼ -5.0% 3.5x 7.1xSND 72 0.92 0.92 0.95 0.90 — 0.0% 7.6x 8.1xSDM Sedgman Limited 185 0.75 0.83 0.83 0.75 ▲ 10.7% 3.1x 7.1xSSM Service Stream Limited 61 0.20 0.22 0.23 0.19 ▲ 7.5% NM NMSWL 106 1.36 1.36 1.40 1.34 — 0.0% 4.2x 4.7xSXE 178 1.11 1.10 1.13 1.10 ▼ -0.9% 4.6x 5.7xSTS 31 0.48 0.50 0.50 0.48 ▲ 4.2% 2.8x 9.3xSWK 75 0.35 0.35 0.35 0.34 ▼ -1.4% 2.5x 4.8xTPP 7 0.04 0.05 0.05 0.04 ▲ 17.5% NM NMTSE 776 1.32 1.52 1.53 1.31 ▲ 14.8% 6.8x 13.4xUGL 1,301 7.88 7.97 8.05 7.80 ▲ 1.1% 17.0x 31.8xVMG 10 0.01 0.01 0.01 0.01 — 0.0% NM NMWDS 127 0.86 0.88 0.94 0.86 ▲ 1.7% 4.8x 10.6xWOR 5,553 22.55 22.50 22.73 22.14 ▼ -0.2% 10.6x 12.0xWTP 180 0.95 0.98 0.99 0.92 ▲ 3.2% 2.5x 11.5x
Source: Capital IQ, LCC research
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