Foraco International SA (FAR.TO: Quote) announced that it has entered into a binding agreement to acquire WFS Sondagem LTDA, or "Servitec". Servitec is the second largest mineral drilling company in Brazil and has provided diamond and reverse circulation drilling services for major and junior mining companies in Brazil since 2000.
The first step of the proposed transaction will be the acquisition of a 51% controlling interest in Servitec, in consideration for Cash consideration of R$ 35.65 million or approximately US$20.6 million upon closing; 4.82 million shares of Foraco, out of which 1.30 million shares are currently held by Foraco.
The closing of the transaction is scheduled to take place in April 2012.
The parties have a call and a put option to transfer the remaining 49% of Servitec's share capital. This second step of the transaction is due to take place in 2015.
by RTT Staff Writer
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