Civmec

Civmec: is said to be in talks to acquire Australian mining services co Allmine Group. Negotiations revolve around a scrip-based proposal that would value Allmine at more than A 25 cts/sh, or more than A$77 m. Allmine last traded at 13.5 cts, and a formal offer at the mooted min price would represent a premium of at least 46%. Australian billionaire James Packer‘s Ellerston Capital owns 11% of Melbourne-based Allmine, which is trading at a current P/E of just 2.7x. This compares with Civmec's 19x P/E. Allmine operates engineering, procurement, construction and maintenance divisions. Its project alliance partners include China Metallurgical Group and China Non-Ferrous Metal Industry’s Foreign Engineering Construction Co. In FYJun12, Allmine’s net profit more than quadrupled to A$13.9 m, while its gearing levels stood at 17%. The co forecast revenue growth of between 20% and 30% in FY13 and said it had forward contracts worth A$141 m and growing. Spokespeople for Allmine Group and Civmec declined to comment.