Canadian giant has made a cash offer for the shares of NZ stock exchange listed Opus International Consultants
WSP is poised to take over New Zealand-based Opus International Consultants (OIC) after reaching an agreement with the firm鈥檚 Malaysian-based majority shareholder.
The consulting giant鈥檚 cash offer for UEM Edgenta鈥檚 61.2% stake, which it has extended to the other OIC shareholders, values the business at NZ$263.2m (拢148m).
This is 86.9% higher than the closing price on 11 August for OIC鈥檚 shares, which are listed on the New Zealand stock exchange.
OIC is a multi-disciplinary infrastructure, building and asset management consultancy with over 3,000 staff across New Zealand, Australia, Canada and the UK. Some 1,800 of its employees are based in 36 offices across New Zealand.
In 2016, OIC reported revenue of NZ$471m (拢264.9m) and operating earnings before interest, tax, depreciation and amortization of NZ$28.3m (拢15.9m).
UEM Edgenta鈥檚 acceptance of WSP鈥檚 offer is subject to shareholder approval at a general meeting to be held in the foruht quarter of this year.
WSP said the acquisition was 鈥渁n opportunity for WSP to improve its presence and expertise in the Australia and New Zealand market鈥� and that OIC鈥檚 operations would increase the Asian-Pacific region鈥檚 share of its total revenue in from 14% to 20%.
The Canadian-headquartered firm has expanded rapidly in recent years and in the last 11 months has acquired and UK transport specialist Mouchel. The OIC takeover would take its staff count to almost 40,000.
Alexandre L鈥橦eureux, president and chief executive of WSP, said: 鈥淲e believe our offer is attractive to OIC shareholders, customers and employees. The transaction, which is in line with our 2015-2018 Strategic Plan, will enable us to fulfil our strategic ambitions of enhancing our activities in the Australia and New Zealand region, while strengthening our expertise in the water-related infrastructure sector and asset development and management.
鈥淭he combination of skills and compatible cultures will provide a great foundation for the two organizations to work together effectively on selected projects, creating attractive and value-enhancing solutions for our clients.鈥�
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