Australian infrastructure consultancy Cardno will today come out of trading halt having completed a $50 million placement to partly fund a new acquisition

Australian infrastructure consultancy Cardno will today come out of trading halt having completed a $50 million placement to partly fund a new acquisition. The acquisition of Nth American PPI Group is designed to further diversify Brisbane-based Cardno's business and provides exposure to the growing oil and gas sector. The placement was handled by Morgans and is rumored to have been three times over subscribed from domestic and international institutions. Morgans analyst Roger Leaning backed the logic of the transaction, adding Cardno might be able to sell its current environmental expertise to PPI's oil clients, and vice versa. It also offered a cheaper way to expand oil and gas operations geographically, he said. Other services companies are keen on energy, trying to diversify from mining risk, with Queensland's Ausenco and ALS last year buying energy-affiliated companies. (VIEW LINK)


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