The finalization of the acquisition is subject to the parties entering into a legally binding share sale and purchase agreement. The agreement is expected to be concluded by the end of the 2009-10 financial year.
Monadelphous has agreed with KT’s shareholders to acquire 100% of the shares in KT for a combination of cash and an issue of shares in Monadelphous. The consideration will comprise an upfront component of $16.5m and a deferred component payable subject to KT achieving certain financial targets.
The total consideration payable, which will not exceed $30m, will be based on three times average annualized earnings before interest and tax.
Rob Velletri, managing director of Monadelphous, said: “This will support the expansion of our infrastructure business to continue to drive our successful record of long term growth.”
