Transfield Services Ltd (ASX:TSE) is set to buy Australian mining and infrastructure services provider Easternwell for $575 million.
Transfield will fund the purchase through debt and equity, including $271 million of debt to be sourced from new facilities and $294 million equity raising.
The entitlement offer will see new Transfield shares issued at $3 each, which represents a 14 per cent discount to the closing price of $3.50 on Friday.
Transfield says the Easternwell acquisition is expected to contribute over $40 million in EBITDA in the first six months of 2011.
Transfield Services rebounded into the black with a net profit of $73.55 million in the 2010 financial year.
TSE Price at posting:
$3.41 Sentiment: None Disclosure: Held
