South Africa’s MDM Engineering Group has entered into a merger implementation agreement with Australia’s Sedgman under which Sedgman’s BVI subsidiary will acquire all of the ordinary shares in MDM, subject to MDM shareholder approval. The transaction is valued at $109 million.
“MDM is delivering strong growth, underpinned by an increasing order book and excellent relationships with our key clients,” said MDM CEO Martin Smith. “The merger also positions MDM within the larger Sedgman consolidated group with existing engineering expertise focused on the resources sector coupled with a larger balance sheet to support the increasingly complex and larger scale projects which MDM is undertaking and targeting throughout Africa.”
MDM has completed a number of projects and is actively studying many more. MDM recently completed a 3.6 million mt/y chrome and PGM concentrator plant for Tharisa Minerals in North West Province, South Africa. Due to the fast track nature of the contract, MDM used in-house resources to manage and construct the plant. The plant was successfully commissioned in September 2012 on time and within budget. This was done on an EPC fixed price contract valued in excess of US$130 million.
MDM is also constructing a 2.4 million mt/y manganese beneficiation plant for Kalahari Resources. The company completed and successfully commissioned one of two 1-million-mt/y copper dense media separation plants for ENRC’s Camrose copper project in the DRC. MDM has nearly finished the engineering and procurement for the 2 million mt/y gold heap leach gravity and carbon-in-leach recovery plant for Banro. The construction management team has mobilized to site in the South Kivu Province, DRC, and is busy managing the earthworks terracing and civil foundations.