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RECORD POINT

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Mastermyne completes acquisition of Diversified Mining Services
2014

On 26 September 2014, Mastermyne Group Limited (Mastermyne) announced that it had entered into a definitive agreement to acquire Diversified Mining Services Limited (DMS).

DMS provides a range of mining services in Queensland and New South Wales through three business units: Maintenance (scaffolding and rigging, protective coatings, poly welding, scheduled maintenance and on-site repairs), Engineering (specialist fabrication, machining and line boring, design and consulting) and Mining Operations (ventilation services, outbye services, gas drainage and secondary support).

Mastermyne is a leading provider of specialised services to the coal mining industry in Queensland and NSW, operating through Mastermyne Underground (underground roadway development, installation of conveyors and longwall relocation), Mastermyne Engineering (design and engineering of specialised mining equipment and consumables) and Mastermyne Services (electrical, mechanical and maintenance services).

The transaction is expected to assist Mastermyne in diversifying its services, enhance its current capabilities to existing customers and provide a platform for Mastermyne to pursue new opportunities in maintenance.

The transaction consideration comprised 15.6 million Mastermyne shares (representing c.17% of the combined shares) to be issued to DMS shareholders and $10.3 million of cash to payout DMS’s debt and restructure the business, implying an overall transaction value of $20 million.

DMS’s shareholders voted overwhelmingly in favour of the transaction.  The sale was completed by way of a Scheme of Arrangement in December 2014.

Record Point acted as the exclusive financial advisor to DMS.