SYDNEY, AUSTRALIA: Metarock Group Limited (ASX:MYE), a prominent player in the mining services industry, has officially declared the sale of its entire stake in PYBAR, a leading underground hard rock contracting business, to Thiess Pty Ltd for a headline consideration of $65 million.
This strategic move is expected to net Metarock approximately $36.3 million after adjustments, significantly fortifying the company’s balance sheet.
The Share Sale and Purchase Agreement (SPA) ensures that all PYBAR employees, including the senior management team headed by CEO James Glover, will join Thiess, which plans to retain the PYBAR brand and invest in its growth. The transaction’s completion, slated for April 30, 2024, hinges on several conditions, including third-party consents and the absence of any workplace fatalities.
Post-sale, Metarock’s portfolio will focus on its Mastermyne business segment, which has shown robust financial performance, contributing 63% of the group’s revenue and 61% of EBITDA in the first half of FY24. The divestment aligns with Metarock’s strategy to leverage its remaining business units—Mastermyne, Wilson Mining, and MyneSight—for substantial growth.
M Resources Group, Metarock’s major shareholder, has expressed full support for the transaction. Financial advisory services for the deal were provided by Grant Samuel, with legal counsel from Corrs Chambers Westgarth and Squire Patton Boggs for Metarock and Thiess, respectively.
This transaction marks a pivotal step for Metarock, enabling the company to accelerate its growth plans and deliver enhanced value to its shareholders.
Metarock Group Executive Chair, Jon Romcke said: “The agreed transaction represents a great outcome for Metarock shareholders. The purchase consideration represents compelling value for the PYBAR business, which will continue to grow as part of Thiess’ global mining services platform.
The transaction significantly strengthens Metarock’s balance sheet and is expected to return the Company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining and MyneSight businesses. The transaction removes the remaining constraints over the Company’s ability to pursue the significant growth opportunities in the pipeline and represents a further key milestone in the successful turnaround of the Metarock Group.”