Kentz rebuffs takeover offers

By Chris Sleight20 August 2013

UK-headquartered international engineering company Kentz has rejected takeover offers from both Germany’s M&W and British competitor Amec as being too low. The most recent offer from Amec valued the company at a maximum of UK£ 690 million (US$ 1.08 billion).

Amec said the acquisition of Kentz would extend its geographic footprint in emerging markets and increase the range of services the company could offer. However, its offer of UK£ 5.65 – 5.80 (US$ 8.85 – 9.09) per share was said to “undervalue” Kentz by its board. Kentz had previously rejected a lower offer from M&W on the same grounds.

Kentz is an engineering company serving the oil & gas, petrochemical and mining & metals sectors offering engineering, procurement and construction (EPC), construction and technical support services. It generated revenues of US$ 1.56 billion last year and a pre-tax profit of US$ 105 million. It has 14,500 employees in 30 countries.

A statement from Kentz said, “The board of Kentz is not considering any other offers… nor is it considering a strategic review with a view to seeking a sale of the company.”

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
5 ways to make remote working work
Keith Ali, MD at Creative ITC, explains how to overcome 5 common challenges when deploying remote working solutions to ensure AEC organisations realise business benefits from digital transformation.
COMMENT: Are we at the beginning of a golden decade in German construction?
Peter Gerstmann, chairman of the board of management of the Zeppelin Group discusses growing opportunities for the German construction sector
Can hydrogen engines turn construction green?
Hydrogen combustion engines move to centre stage as construction aims for zero emissions
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA