AMEC’s £680m Kentz offer snubbed
AMEC, the engineering group, has confirmed that it has tabled a bid for smaller rival Kentz, but its offer of 565p to 580p per share has been rejected.
London-based Kentz said AMEC’s bid, worth around £680m, undervalues it. The company said it had also snubbed an approach by German group M+W, which was at a lower level.
AMEC, which has major operations in the North West, including sites in Knutsford and Warrington, revealed it has been chasing Kentz for several months.
It said: “The proposed offer, which was at a price of 565 to 580 pence per Kentz share, represents a substantial premium to the current share price which has itself appreciated significantly since AMEC made an earlier approach to Kentz on July 11of this year.
“Based on publicly available information, AMEC believes the proposed offer represents a highly attractive opportunity for Kentz and its shareholders though it has been rejected by the board of Kentz.
“AMEC takes a disciplined approach to acquisitions, with clearly defined strategic and financial criteria. The making of any firm offer would be subject to the satisfaction of a number of pre-conditions including, but not limited to, due diligence and the recommendation of the board of Kentz.”
AMEC said the acquisition would “extend AMEC’s geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC’s position in two of its core markets; oil & gas and mining.”
Amec said at the start of the month it was looking to make acquisitions in the second half in the oil and gas sector, and if no deals were forthcoming it would consider a cash return for shareholders.
Kentz, a FTSE 250 company, listed in 2008 and has grown rapidly into a diversified construction company with mining, oil and gas, and infrastructure projects all over the globe.
