Engineering and construction contractor Monadelphous has taken a 10 per cent stake in a joint venture partner, waste management services company Anaeco.
In a deal announced today, Anaeco will issue Monadelphous with 44 million shares, priced at 4.8 cents each as payment for approximately $2 million in development costs incurred in the two companies’ joint venture arrangement.
Anaeco and Monadelphous are expanding a waste treatment plant in Shenton Park, using Anaeco’s DiCOM technology, for the Western Metropolitan Regional Council.
The expansion is expected to be completed by the end of September.
Anaeco managing director Patrick Kedemos said the company was pleased to have Monadelphous on board as a significant shareholder.
“I welcome its significant contribution to the WMRC project’s success, both from a construction standpoint and in becoming a cornerstone investor in Anaeco,” Mr KEdemos said.
“We are already partners though the design and construct JV, and this equity position binds the relationship as we work to finish the project as well as collaborate towards tackling future projects together.
“It is a privilege to expand our integration with a company that enjoys such a well-deserved reputation.”
At close of trade today, Monadelphous shares were up 0.5 per cent, at $21.98, while Anaeco stocks were up 25 per cent, at 5 cents.
