Major Drilling Group International Inc. A$80M Acquisition of McKay Drilling PTY Ltd.
May 31, 2021
On June 1, 2021, Major Drilling Group International Inc. ("Major Drilling") completed its previously announced acquisition of all issued and outstanding shares of privately-held McKay Drilling PTY Ltd.(“McKay”), a leading specialty drilling contractor based in Perth, Australia.
The transaction was completed by payment in cash of A$39.7 million (representing approximately $37.1 million in Canadian dollars) and the issuance of 1,318,101 common shares of Major Drilling, valued on the closing of the transaction based on the volume weighted average price of the shares on the TSX for the 10 trading days prior to the closing date. In addition, an earn-out of up to A$25 million will be payable in cash over the next three years, subject to certain conditions.
McCarthy Tétrault advised Major Drilling with a team led by Hadrien Montagne that included Louis-Charles Filiatrault and Alexis Hudon.