First Reserve-backed Australian miner to go private

The company announced in a regulatory filing that it will cap its buyback offer at A$7.2 million ($5.4 million), representing a share price of A$0.12 for up to 59.8 million shares, or about a 16.9% stake in the company. The A$0.12 price is a slight discount on the October 28 close.

First Reserve, which holds a 59% stake in Calibre, and co-founder Ray Munro, who owns 11%, will not participate in the buyback. The PE firm first bought a majority stake in the company in 2010 for an undisclosed amount. Calibre went public two years later, raising A$75 million in its IPO.

The take-private decision reflects the view of Calibre's board that the company's low market capitalization does not reflect its actual value. It noted that the low volume and frequency of trading in Calibre shares, and that the financial, administrative, and compliance costs of remaining listed are not in the best interests of shareholders.

Calibre's board will put the proposal before shareholders at the company's annual general meeting on November 30. Regulatory approval will also be needed, which the company believes it will receive by the time of the meeting.

In addition to the buyback, Calibre announced that it will acquire Australian civil engineering firm Diona for up to A$90 million on a cash and debt-free basis. Diona provides electrical, gas, water and waste management services to the utility sector in New South Wales, Queensland and South Australia, and claims revenue of over A$100 million per year.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Industrials
• Buyouts
• Performance
• Australia
• First Reserve Corp
• buyout
• Commodities