MTQ: to acquire 100% of Premier Seas & Land Ltd for US$19.3m. Premier’s net BV is US$15m incl cash, and net profit US$4.1m, which translates to an acquisition multiple of 1.3x P/B, 4.7x P/E. The acq is earnings accretive and compares with MTQ’s valuation at 6.8x P/E. Post acq, total debt to equity is expected to rise to 58% from 36%, still manageable levels...
Premier sells and rents oilfield eqpt and also has a machine shop specializing in repair/ retrofitting/ component manufacturing of oilfield eqpt and machinery. MTQ notes the acq is a good strategic fit and will increase the scope and scale of its core Oilfield operations
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