Boart Longyear has faced a year of heavy setbacks and losses, but the world’s biggest mines drilling contractor may now be looking at breaking up the drilling services and products divisions, according to reports by Dow Jones Institutional News.
Over the past year Boart Longyear has tried a range of tactics to battle the market downturn, from taking on a new CEO to cutting back the workforce, however huge revenue losses have prompted the driller to hire Goldman Sachs, announced Monday, to carry out a strategic review of the business.
Although Boart Longyear has not yet revealed any deadlines for this review, it has said that the review may lead to debt-reducing strategies, refinancing, recapitalisation, sale of assets or even a break-up of the company divisions.
This morning a spokesperson for Boart Longyear said that all options were being put on the table, but it was too soon to talk about a company break-up.
“Talk of being broken up is very alarmist. Boart Longyear has commenced a strategic review of the capital structure, carried out by Goldman Sachs, and all options are on the table. Anything you can think of, they’re thinking of, and they’re certainly not talking about doing anything in a hurry, they don’t have a gun to their head,” they said.
Image: Boart Longyear