Tuesday, May 24, 2011


Nordic: seeks sh/h approval for the acquisition of 100% of Multiheight Group for up to $47m. The target is a leading provider of scaffolding systems for onshore O&G and petrochem & marine industries. Its most recent completed project is for a scaffolding system in Dynamac’s BP Angola Project in 2010. Current projects include contracts with SMM and Keppel O&M...

Co will fund the acq. through its IPO proceeds, bank borrowings and through internally generated funds.
Nordic seeks more stable income streams from Multiheight as 35% of Multiheight’s revenue is from recurrent maintenance contracts. They also look to mitigate concentration risk in China and the cyclical risk of the O&M industry...

The acquisition should be completed by 1 Jul 2011 following the EGM on 7 Jun 2011.
Stock currently trades at 7.6X P/E. There is no coverage on the stock.

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