Insights

Why the NRW (ASX:NWH) share price is on watch

The NRW Holdings Limited (ASX:NWH) share price is one to watch after an update on the company’s Primero Group Ltd (ASX:PGX) acquisition.
The post Why the NRW (ASX:NWH) share price is on watch appeared first on The Motley Fool Australia. –

M&A Letters

The NRW Holdings Limited (ASX: NWH) share price is on watch after an acquisition update from the Aussie mining services group.

Why is the NRW share price on watch?

NRW announced that it has completed the compulsory acquisition of outstanding Primero Group Ltd (ASX: PGX) shares. That means the diversified Aussie mining and construction services group now owns 100% of Primero shares.

It follows NRW’s 24 November 2020 announcement about its $100 million offer for Primero. Primero is a vertically integrated engineering group operating on global resource projects across Australia and North America.

Under the terms of the offer, Primero shareholders received 27.5 cents cash plus 0.106 NRW shares for each Primero share. The NRW share price has been under pressure in recent months including a 33% decline in 2021.

Last night’s compulsory acquisition update follows a February update on the process. NRW was trying to entice Primero shareholders who were holding out on the deal with accelerated payment terms. That meant those who accepted the terms prior to compulsory acquisition would be paid within 10 days of valid acceptances.

Shares in the mining and construction services provider fell 16% in one day. That happened on 16 February after the group’s half-year results for 1H 2021. NRW reported a 44% increase in revenue to $1.168 billion and a 28% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $132.8 million.

However, the NRW share price fell as profits slumped lower. Net profit after tax and before amortisation and other items fell 12% to $40.3 million.

Foolish takeaway

Yesterday’s announcement effectively brings to a close this chapter of NRW’s latest takeover. The NRW share price will be worth watching in today’s trade after the company successfully moved to acquire 100% of Primero shares on offer.

The Aussie mining and construction services group has been under pressure in 2021 and is underperforming the S&P/ASX 200 Index (ASX: XJO).

NRW closed Wednesday’s session with a $903 million market capitalisation and a 12.4 price-to-earnings (P/E) ratio.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the NRW (ASX:NWH) share price is on watch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!