20
June 2008
The Manager
Company Announcements Office
Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000
JOINT ASX/MEDIA STATEMENT
RESPONSE TO MACMAHON?s OFFER
Diversified mining and services company Ausdrill Limited (ASX code:
ASL) has today lodged its Target?s Statement with ASIC and the ASX, in
response to Macmahon Holdings Limited?s (Macmahon?s) inadequate and
opportunistic offer, announced on 21 May 2008.
Ausdrill shareholders should receive copies of the Target?s Statement in
the mail over the next few days, setting out in full why Directors unanimously
recommend they should reject Macmahon?s Offer.
Ausdrill Chairman Terry O?Connor said Macmahon?s Offer did not fully
value Ausdrill shares and shareholders were being offered shares in a lower
return business with increased risks.
Macmahon is obliged to tell the market each day by 9.30am of movements
(greater than 1%) in its relevant interest in Ausdrill shares. The fact
that no such notice has been lodged by Macmahon suggests that less than 1% of
Ausdrill shareholders have so far indicated that they would be prepared to
accept Macmahon?s all scrip offer, which has been open for acceptance since 6
June 2008.
Mr O?Connor said that the response from Ausdrill shareholders confirmed
strong support for the Board?s view that Macmahon?s Offer was inadequate and
should be rejected.
?Ausdrill is a strong company with proven management, performance and
sound growth prospects with expected net profit growth in the 2009 financial
year - at least equal to Macmahon?s 20-30% medium term organic profit
growth target,? Mr O?Connor said.
Managing Director Ron Sayers has recently increased his shareholding in
Ausdrill to 14.29%. Directors now control 15.25% of Ausdrill. In
addition, other shareholders holding a further 25.7% of Ausdrill have confirmed
in writing to Ausdrill (on a non-binding basis in respect of the current terms
of Macmahon?s Offer, subject to no new information becoming available) that
they will not accept Macmahon?s current Offer.
Shareholders who have any questions concerning
Macmahon?s can call Ausdrill?s Shareholder Information Line on 1800 104 758
or from outside Australia
on +61 2 8268 3691.
About Ausdrill
Ausdrill is a diversified mining and services company providing leading
edge services in mining, drill & blast, exploration, procurement &
logistics, manufacturing, telecommunications and automotive industries with
operations in Australia, the United
Kingdom and Africa.
Ausdrill has established a blue chip client list over many years, with
whom the company has long term relationships.
For further information, go to www.ausdrill.com.au
or contact
Caroline de Mori
Purple Communications
Tel. 0418 919 064
***
Issued by
Purple Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 9485 1254 Fax: 08 6263
0455
purple@purplecom.com.au