Humanis Group Ltd has entered into a binding Heads of Agreement
Recruitment company Humanis Group Ltd (ASX: HUM) today announced it has entered into a binding Heads of Agreement (HOA) with resource industry service provider ResCo Services Pty Ltd in which Humanis will acquire ResCo for $13.4 million through the issue of Humanis shares at $0.01 per share.
A $15 million non-renounceable rights issue (to be underwritten) will also be offered to Humanis shareholders to allow them to subscribe for shares at $0.01 per share to appropriately capitalise the combined Humanis/ResCo Group.
Humanis is a leading specialist labour hire, professional placement and international recruitment business. ResCo provides skilled labour, specialised mine site operation and maintenance services targeting the resources sector.
This merger will create one of Australia's most diversified providers of staffing, maintenance and project services solutions, deploying more than 10,000 employees annually, the company said.
The combined group will have an operational capacity spanning Australia New Zealand and the Philippines, servicing a client base of principally ASX Top 200 companies.
The combined group is anticipated to achieve pro forma revenue of approximately $300 million for the 2011 calendar year.
Humanis/ResCo will also gain demonstrable industry experience with ResCo directors Craig Ransley and Andrew Poole both set to join the Humanis's board as non-executive directors, according to Humanis' statement.
Humanis will undertake a non-renounceable rights issue to raise approximately $15 million before issue costs in conjunction with the ResCo acquisition to ensure that the combined group is appropriately capitalised. The rights issue will be on a 2.46-for-1 basis and will also be priced at $0.01 per share.