Debt-laden drilling services provider Boart Longyear says it has sold some of its Sub-Saharan African operations to Tranter Energy and Mining Services.
Boart Longyear, which has seen its share price plunge from its highs in 2008 of $2.55 to a low of 9.5 cents in February this year, has been trying to sell-off non-core assets.
The company owed about $US797 million ($989.26 million) in March but indicated net borrowing at the end of 2009 was expected to be below $US700 million ($868.86 million).
The latest operation sold, to be re-named Tranter Rock Drills, includes percussive rock drills and hard rock tools product lines, the company said.
It generated about $US14 million ($17.38 million) last year, and includes manufacturing operations located in Roodepoort, South Africa.
Tranter Energy and Mining Services is a subsidiary of Tranter Holdings, a managed investment company registered in South Africa that focuses on the mining and energy industries.
In a statement, Boart Longyear did not disclose how much the sale generated but said a one-off non-cash charge of about $US3 million ($A3.72 million) would be recorded in the first half of 2009 as a result of the sale.
Boart Longyear chief executive, Craig Kipp, said the sale was part of an ongoing strategy to divest some assets.
"We have also taken actions to transfer the manufacturing of several product lines to outsourced suppliers," Mr Kipp said.
"As a result of this transaction, we are able to remain in the rock drill business outside of Africa with improved production flexibility and reduced fixed costs," he said.
At 0855 WST, shares in Boart Longyear were one cent higher at 27 cents.
AAP
