Company news: Emeco
Emeco has entered into an asset swap agreement with another company. Emeco will swap its Chilean based assets for 85 pieces of equipment located in Australia, plus receive cash, and will now focus on its Australian operations. The swap will enhance Emeco's Australian fleet, result in net cash proceeds of $12mill, and reduce capex by ~$5mill in FY-18.
This agreement is expected to add meaningful value from FY-18 onwards, both in relation to capacity in the Australian market (where we are seeing demand and margin improvement), and lower capex.