Contractors Unlimited

Forge Shareholders Approve $19.5M Placement to Clough

Clough Forge Group Limited ("Forge", ASX: FGE) and Clough Limited ("Clough", ASX: CLO) are pleased to announce the approval today by Forge shareholders of a placement to Clough of 10.25 million shares for proceeds of $19.5 million ("Placement").

The Directors of Forge welcome Clough to their register as Forge's largest shareholder at 13%.

The Placement specifically meets Forge's objectives of strengthening its balance sheet and improving working capital to pursue larger scale projects and acquisition opportunities.

The Placement is the first step in a series of transactions, including a proposed proportional takeover offer by Clough, which contemplates Clough becoming a 31% - 56.5% cornerstone investor in Forge and the formation of a long term strategic alliance between the companies.

The key alliance principles under the strategic alliance become effective on certain triggers, including Clough acquiring 31% of Forge or if Clough declares the Offer to be unconditional.

The strategic alliance will allow both companies to leverage their complementary expertise and to capitalise on significant time and place opportunities in the oil and gas, minerals and civil infrastructure sectors. The alliance is expected to accelerate opportunities, individually and in partnership, and targets increases in project revenues for both companies with an anticipated positive impact on earnings.

Settlement of the placement is expected to occur by tomorrow and documentation relating to the proposed takeover offer will be distributed to Forge shareholders shortly thereafter.

Clough delivers an integrated Engineering, Procurement and Construction service to projects in the oil and gas, mineral and infrastructure sectors in Australia and across South East Asia. The Group's services range from concept development through design, construction, installation, commissioning, operations and maintenance.

Published 06/04/2010

Find out more about:

Clough »

Search for more News







Advertising || About Us || Contact Us || Search || Legal || Tell a Friend
© Copyright 2010 - All rights reserved