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.”