SYDNEY: Big River Industries Ltd (ASX:BRI) said on Monday it will acquire Western Australian distributor John’s Building Supplies for up to A$17 million, expanding its trade-focused building materials footprint in the state.
The deal includes A$15 million upfront, comprising A$13 million in cash and A$2 million in Big River shares, with an additional A$2 million payable subject to earnings targets. Completion is expected around Dec. 15.
To partially fund the purchase, Big River will raise about A$10 million through a fully underwritten pro rata renounceable entitlement offer at A$1.37 per share, a 2.1% discount to its recent 10-day VWAP. Eligible shareholders can subscribe for three new shares for every 35 held.
The entitlement offer, underwritten by Petra Capital, is backed by major shareholders Naos, Anacacia and MA Financial, along with directors and key executives, representing at least 70% of the offer.
Chief Executive John Lorente said the acquisition strengthens Big River’s presence in Western Australia and adds long-standing customer relationships. “This acquisition expands our presence in an important growth region and strengthens our position in key trade-focused market segments,” he said.
Trading of entitlements will run from Dec. 3 to Dec. 10, with new shares expected to be issued on Dec. 24 and commence trading on Dec. 29.