Rapid welding technology manufacturer K-TIG has failed to meet its planned transaction date for the purchase of UK advanced manufacturer Graham Engineering Limited (GEL).
The company’s share purchase agreement (SPA) to acquire the business as an entrée to the UK nuclear decontamination field reached its sunset date of 31 August with a number of conditions for the scheme not yet satisfied.
According to the Adelaide manufacturer: “Challenging capital market conditions caused by underlying macro and geopolitical events have made the completion date of the transaction within the sunshine date extremely difficult.”
K-TIG is vying for contracts to manufacture containers to house UK nuclear wastes, and was seeking GEL an an in country manufacturing presence – GEL already produces highly engineered, large scale metal fabrications for the sector.
K-TIG’s Keyhole TIG / GTAW welding technology, originally developed by CSIRO, is also being trialled as an alternative to conventional gas tungsten arc welding (GTAW) of pipe joints for the US nuclear submarine construction programme.
K-TIG said: “Notwithstanding the above, at this point K-TIG remains committed to completing the SPA and, subject to the intentions of GEL, is willing to negotiate good faith variations to the SPA to allow this to occur.
“In the event that a variation cannot be agreed, either party may terminate the SPA.”
K-TIG is exploring a number of funding options to complete the transaction and has withdrawn its supplementary prospectus covering the deal.
K-TIG’s shares remain suspended on the ASX.
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Browse @AuManufacturing’s coverage of K-TIG here.
Picture: Nuclear Advanced Manufacturing Research Centre/vessel welding