Jump to content

You are now visiting the Sandvik Group website in English. Would you like to switch to another language site with selected content translated?

Sandvik intends to acquire the Australian company SDS Corporation

Sandvik is offering AUD 106 M, corresponding to SEK 594 M, for the acquisition of the Australian company SDS Corporation Ltd, which is world leading in the design and manufacture of drilling equipment for mineral exploration.

Among other conditions, the acquisition requires approval from shareholders representing at least 90% of the shares.

The offer is being made through Sandvik's wholly owned Australian subsidiary Sandvik Mining and Construction Australia Pty Ltd and corresponds to AUD 1.14 (SEK 6.38 at an exchange rate of SEK 5.60 per 1 AUD) per share in SDS, representing a premium of approximately 32% per share compare to average weighted share price the previous three months.

The Board of Directors of SDS has unanimously recommended the shareholders to accept the offer. SDS had sales of SEK 650 M in fiscal year 2005 and report sales of SEK 400 M during the first half of the 2006 fiscal year. The company has approximately 500 employees.

"The acquisition is in line with the Sandvik Group's long-term strategy of continued profitable growth. SDS is a stable company with a strong market position and through the acquisition we intend to continue expansion in Australia as well as globally," says Lars Josefsson, President of the Sandvik Mining and Construction business area. "SDS's strength within exploration complements Sandvik's current operations, while at the same time the business opportunities for SDS increase through gaining access to Sandvik's global resources."

Sandviken, 7 April 2006

Sandvik AB; (publ)

We would like your consent

Sandvik and our vendors use cookies (and similar technologies) to collect and process personal data (such as device identifiers, IP addresses, and website interactions) for essential site functions, analyzing site performance, personalizing content, and delivering targeted ads. Some cookies are necessary and can’t be turned off, while others are used only if you consent. The consent-based cookies help us support Sandvik and individualize your website experience. You may accept or reject all such cookies by clicking the appropriate button below. You can also consent to cookies based on their purposes via the manage cookies link below. Visit our cookie privacy policy for more details on how we use cookies.