Acquisition of energy & industrial services business in the UAE market
Northbridge Middle East FZE is pleased to announce that RDS (Technical) Ltd (“RDS”) its wholly owned subsidiary has acquired 66.67% of the interests of Tyne Technical Equipment Rental Services LLC (“TTERS”) the Dubai registered company whose principal business is the rental of generators and the sale of associated services to the infrastructure and the oil & gas industries in the United Arab Emirates.
Based in the Jebel Ali Free Zone of Dubai and part of Northbridge Industrial Services plc (“Northbridge” or “the Company”) the industrial services and rental company which is an AIM-quoted company registered on the London Stock Exchange, Northbridge Middle East FZE (“NME”) has established an energy services rental business serving the Middle East, North Africa and Central Asia regions with a broad range of equipment available for rental and sales.
TTERS was formed in 2004 by the current shareholders who will remain with the business.
The shares of TTERS are being acquired by RDS the wholly owned subsidiary of NME, the existing Northbridge business in the region. As part of the transaction RDS will provide up to AED1.35 million (US$365,000) by way of an intercompany loan for further investment into the TTERS hire fleet.
As part of the total consideration 80,000 new ordinary shares in Northbridge will be issued on the AIM market of the London Stock Exchange which will be held by the vendors for a minimum period of 24 months. Additionally, Northbridge has the option through RDS to acquire the remaining 33.33% of the interests in TTERS on 13 April 2011 for a price based on a multiple of net profits in the preceding 12 months.
The 80,000 new ordinary shares will rank pari passu with the existing ordinary shares of the Company, and admission to trading in the new shares is expected to commence on 24 April 2009. Following the issue of these shares, the Company will have 7,710,149 ordinary shares in issue of which 152,150 are held in treasury.
This acquisition will help to further Northbridge's strategy to acquire and develop companies which sell and hire industrial equipment. In addition, it will complement Northbridge existing activities in the area and expand the geographical area serviced by Northbridge’s previous and similar acquisition of RDS.
