British engineering firm Amec withdraw $1.1-bn bid for Kentz
13 Sep 2013
British engineering services company Amec Plc yesterday withdrew its £690-million ($1.1 billion) offer for Irish oil and gas specialist Kentz International, ahead of Monday's put-up-or-shut-up deadline.
Amec, an FTSE 100 company based in London, had till 16 September to make a formal bid for Kentz.
In May, Amec had offered to buy its smaller peer at upto 580 pence per share, but Kentz rejected the offer saying that the bid undervalued the company and its future prospects.
Although both companies entered into a dialogue, but Kentz refused to open up its books until Amec raised its offer.
''Amec continues to see attractive opportunities to extend its geographic footprint in the growth regions, increase the range of services offered to clients, and enhance Amec's position in its markets. Amec will retain its disciplined approach to acquisitions, consistent with its clearly defined strategic and financial criteria,'' Amec said in a statement.
''The pipeline of opportunities remains strong, and depending on the progress of acquisitions, additional cash returns to shareholders will be considered in the fourth quarter of 2013,'' it added.
Amec's withdrawal now leaves German construction firm M+W Group, which Kentz had earlier also rejected its offer since it was lower than Amec.
M+W Group, owned by the Austrian Stumpf Group, has until 16 September to make a formal offer.
Founded in 1919 and based in Jersey, Kentz is an engineering and construction company operating primarily in the oil and gas, petrochemical, mining and metal industry.
After incurring heavy losses in 1992 while refurbishing the national museum of Catalan in Spain, the company was restructured with investment from Malaysian Group, Peremba, which acquired a majority 80-per cent stake in the company.
Kentz was subsequently listed on the Alternative Investment Market in 2008 and transferred to the London Stock Exchange in 2011. Peremba subsequently reduced its stake to a mere 13 per cent, but still remains its largest shareholder.
Kentz operates in 30 countries around the world, including the Americas, the Middle East, Africa, Australasia, the Far East, Russia and Europe.