PERTH: Babylon Pump & Power Limited has entered into an unconditional agreement for the acquisition of assets from Tilbrook Ryder Investments Company Pty Ltd.
The transaction is expected to complete on 1 October 2020 and will be funded by a cash payment of $750,000 from existing asset finance facilities and issuance of 7,142,856 fully paid shares pursuant to Babylon’s placement capacity under ASX Listing Rule 7.1.
The assets are a valuable addition to Babylon’s existing rental fleet, providing quality pumping assets for immediate use that are traditionally long lead items from OEMs. Trico’s fleet provides immediate opportunities to increase rental revenue in Western Australia as well as providing assets which can be used in the Queensland rental market as rental activity progresses in Babylon’s Mackay based operating entity, Primepower Qld.
The transaction will result inentities controlled by the founders of Trico becoming shareholders in Babylon and the consideration shares will be subject to a one-year voluntary escrow.
Babylon Executive Chairman Michael Shelby said: “This is an exciting opportunity to purchase quality long lead assets at a discount to replacement value. We are confident the assets will be deployed immediately, and on attractive rentals that will deliver a rapid payback of their acquisition cost. I am equally excited to have the founders of Trico, Tony Ryder and Dave Tilbrook as supportive shareholders of Babylon. Both founders have many years of experience in the pump rental and heavy equipment industry and have the ability to offer valuable support and industry insight to Babylon as a rapidly growing company in this sector.”