Metarock Group's binding agreement to sell PYBAR business

Metarock Group Limited (ASX: $MYE) has announced the entry into a binding Share Sale and Purchase Agreement to sell 100% of its interest in the PYBAR business to Thiess Pty Ltd for a total headline consideration of $65 million. The estimated net cash proceeds from the Transaction are approximately $36.3 million, after deducting PYBAR's outstanding debt and estimated transaction costs. The completion of the transaction is expected to occur on 30 April 2024, subject to certain conditions.

Executive Commentary on the Transaction

The agreed transaction represents a great outcome for Metarock shareholders. The purchase consideration represents compelling value for the PYBAR business, which will continue to grow as part of Thiess' global mining services platform. The transaction significantly strengthens Metarock's balance sheet and is expected to return the Company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining, and MyneSight businesses. The transaction removes the remaining constraints over the Company's ability to pursue the significant growth opportunities in the pipeline and represents a further key milestone in the successful turnaround of the Metarock Group.

Summary of the Transaction and Outlook

The binding agreement to sell the PYBAR business for $65 million is expected to provide Metarock with approximately $36.3 million in net cash proceeds, strengthening its balance sheet and positioning it to focus on its remaining business units, including Mastermyne, Wilson Mining, and MyneSight. The Transaction is anticipated to accelerate the Company's growth plans and deliver tangible value to shareholders. With the completion of the sale, Metarock aims to capitalize on the significant growth pipeline across its remaining business units and pursue its corporate strategy with enhanced financial flexibility. The Transaction is scheduled to occur on 30 April 2024, subject to certain conditions, and is set to mark a significant milestone in the successful turnaround of the Metarock Group.