Ausdrill has advanced its plan to acquire the Best Tractor Parts Group, signing a non-binding heads of agreement to negotiate terms and conditions of the transaction.
The drilling and mining services firm announced in late May it was in discussions with BTP in relation to a takeover proposal.
Ausdrill said today the proposal remained subject to a number of conditions, including completion of due diligence, negotiation and executive of binding agreements and securing financing for the acquisition.
Ausdrill said it would update the market once a binding agreement was made.
BTP, which supplies parts for Caterpillar, Komatsu, Hitachi and Liebherr earthmoving equipment, is headquartered in Perth, with additional offices in Queensland and New South Wales.
The privately-owned firm was established in the mid-1980s and operated as a subsidiary of Emeco from 1987 to 1996, before BTP's current owners bought Emeco out.
At 2:05PM, WST, Ausdrill stocks were down 0.6 per cent, at $3.34.
