MASTER DRILLING GROUP LIMITED - Acquisition

Acquisition

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)


Voluntary announcement in respect of the acquisition by Master Drilling International Limited
of a 40% shareholding in Bergteamet Raiseboring Europ? AB (an operating company with
raiseboring operations in Sweden, Finland, Norway and Ireland) and withdrawal of cautionary
announcement


Further the cautionary announcement dated 19 November 2015, the Master Drilling Board is pleased
to advise shareholders that its subsidiary, Master Drilling International Limited (“MDI”), has concluded
an agreement to acquire 40% of the issued share capital of Bergteamet Raiseboring Europ? AB
(“Bergteamet Raiseboring”) from Bergteamet AB (“Bergteamet”), with effect from 1 December 2015
for a consideration of Euro 5.0million (“the Acquisition”).


Bergteamet was formed more than a decade ago and Bergteamet Raiseboring presently owns a fleet
of 18 raisebore drilling rigs. Ranked in the top 5 globally, it is one of the major raisebore drilling
operators in Scandinavia, with a dominant market share in Sweden, Norway and Finland. More
recently, it entered the wider European market. It secured a contract in Ireland, has tendered on
certain work in Portugal and Spain and actively markets its services in other European countries.


Whilst growth in Master Drilling has to date been organic in nature, the Company considers an
acquisition as a more effective way of entering the Scandinavian region. The Acquisition will further
provide the platform for Master Drilling to expand operations in the European markets.


The Acquisition is subject to warranties that are normal for a transaction of this nature.


Master Drilling has the ability to increase its shareholding in Bergteamet Raiseboring over time in
accordance with a pre-determined formula.


The Acquisition will be financed from internal resources.

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The Acquisition is not a categorised of transaction in terms of the Listings Requirements of the JSE
Limited. Nevertheless, given the strategic importance of this transaction, the directors of Master
Drilling deemed it appropriate to inform shareholders thereof.

Shareholders no longer need to exercise caution when dealing in their Master Drilling shares.

Fochville
 
24 November 2015



Sponsor


Absa Bank Limited (acting through its Corporate and Investment Banking division)




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