UPDATE 1.20pm Brandrill shareholders have overwhelmingly supported a takeover by drilling rival Ausdrill, with 95.8 per cent voting for the motion at today’s scheme meeting.
The friendly one-for-14.5 scrip deal, valued at $59.8 million at today’s Ausdrill share price, was announced in August.
It has been touted by both parties as “compelling and logical†and creating a financially stronger, combined company better able to take advantage of opportunities as the global economy improved.
The merger is also expected to generate operational synergies, with Brandrill’s drilling business able to use products made by Ausdrill Drilling Tools Australia and Brandrill’s DT Hi-Load truck body business able to supply Ausdrill’s mining services arm.
The combined company will have more than 3000 employees and 270 drilling rigs.
Brandrill, which also held its annual general meeting today, said it had been hampered by start-up delays on resource projects but the general outlook remained positive for its client base.
The company said progress since the start of the financial year had been "difficult" because of project start-up delays.
Brandrill chairman Vince Pendal told the company's annual general meeting that monthly revenues were gradually accelerating as some major civil projects gathered pace.
"Exploration drilling is a bit slower to recover than expected but is improving," he said.
Sales revenues had improved for Brandrill's DT Hi-Load business, which manufactures lightweight, heavy-duty trays for mining and quarrying rear dump trucks, Mr Pendal said.
"As we have been undergoing the merger process, we have had to trim our plans somewhat until the operational uncertainties are removed but the general outlook is very encouraging in both iron ore and coal," he said.
"This should lead to further civil work and a general expansion in drill and blast activities."
Shares in Brandrill were steady at 12 cents at the close of trade while Ausdrill shares also closed unchanged at $1.83.
Industry peer Macmahon last year failed to takeover Ausdrill in a scrip bid that valued the target at more than $400 million.
