Ex-Forge unit directors to control RDG
RDG managing director Jeff Brill.

Resource Development Group's share price more than tripled after disclosing a backdoor takeover of the group through the purchase of privately-owned WA contractor Central Systems.

Under a deal announced today, RDG is issuing scrip in payment for Central, which generated unaudited revenue of $195 million for the 2013-14 financial year.

Central's shareholders will emerge with 78 per cent of RDG, including 16.6 per cent for each of its four founding investors.

Central directors Richard Eden and Andrew Ellison, former directors of Forge Group construction subsidiary Cimeco will join the RDG board.

RDG's shares closed up 11 cents, or 275 per cent, to 15 cents.

RDG said Central had a blue chip client base including Samsung, Fortescue Metals Group, BHP Billiton, Rio Tinto, Xstrata and Newcrest.

Its order book for this financial year is put at $136 million.

RDG managing director Jeff Brill said the combined group would be better placed to win bigger contracts.

"It's no secret that the market is tough and we expect these conditions to persist for some time, but the value in the increase in scale and breadth of RDG's operations that Central brings is immense and gives us a greatly expanded future," he said.

The West Australian

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