Lycopodium runs ruler over ADP
Lycopodium runs ruler over ADP

Lycopodium says it has entered a non-binding agreement to take a majority stake in a South African engineering business.

The company said it was conducting due diligence on ADP Holdings with a decision to acquire the business expected by the end of the first (calendar) half of 2014.

"The target business has a strong track record in the African market and its expertise across a range of mineral commodities, coupled with its regional skills base, would be complimentary to Lycopodium," the company said in a statement.

"Lycopodium has entered into these discussions as the considerable synergies between the businesses would significantly enhance Lycopodium's commodity expertise and project capabilities within Africa and internationally."

Lycopodium did not reveal the size of the stake it would take in the business or the value of the transaction but said it would be funded from cash reserves with no additional equity or debt required.

It said no material impacts were forecast for the current financial year.

Lycopodium noted the deal was non-binding and indicative only with no guarantee of completion.

The West Australian

Popular videos

Compare & Save

Latest

Compare & Save

More from The West