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WorleyParsons announces cash call
Posted on Wednesday, 11 October 2017 05:43
WorleyParsons has unveiled a one-for-ten rights issue to raise about AUD 322.00 million (USD 250.60 million) from existing stock holders.
The Australian Securities Exchange-listed engineering firm is issuing around 24.79 million shares, which account for 9.1 per cent of its enlarged capital, at AUD 13.00 apiece.
WorleyParsons has appointed UBS as lead manager and GSG Counsel as public relations advisor to assist with the transaction, which is expected to close on 2nd November 2017.
The North Sydney-based company provides engineering, construction, geotechnical and environmental consulting services for industries including the oil and gas, chemicals, metals and minerals sectors.
It posted revenue of AUD 4.38 billion in the 12 months ended 30th June 2017, down 23.6 per cent on the AUD 5.73 billion recorded in the previous year.
Earnings before interest and taxes totalled AUD 129.60 million, compared to AUD 128.90 million in 2016.
WorleyParsons is planning to use the proceeds to acquire the upstream oil and gas business of Amec Foster Wheeler from John Wood Group in a deal worth GBP 228.00 million.
The asset transfer comes as the two UK-based engineering companies have successfully merged in a GBP 3.25 billion takeover.
John Wood Group is carrying out the sale as an attempt to clear competitive concerns with the UK Competition and Markets Authority.
It is also concurrently looking to offload Amec Foster Wheeler’s engineering, operation and maintenance business on the UK continental shelf.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 657 deals targeting engineering services providers announced worldwide since the beginning of this year.
The aforementioned merger between John Wood Group and Amec Foster was the largest transaction during the period, followed by Jacobs Engineering’s USD 3.27 billion acquisition of CH2M HILL Companies.
© Zephus Ltd