ENGINEERING FIRMS – AUSTRALIA

Clough on the brink amid fresh contract blowouts

roymorgansocial Leave a comment

Original article by Nick Evans, Perry Williams
The Australian – Page: 17 : 18-Oct-22

Murray & Roberts has advised the Johannesburg Stock Exchange that cost blowouts at the Waitsia gas project and a petrochemicals plant in Texas will reduce its profit for the six months to December. The company’s Australian subsidiary Clough is undertaking engineering work on the two projects, and Clough CEO Peter Bennett has advised staff that the contractor’s financial position has worsened since an update in early September. He also said Clough and its parent are looking at options for the company. Clough recently opened a data room for prospective buyers of the business, while sources have indicated that voluntary administration may also be an option.

CORPORATES
CLOUGH LIMITED, MURRAY AND ROBERTS HOLDINGS LIMITED, JOHANNESBURG STOCK EXCHANGE

Worley bulks up in $4.6bn US expansion

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 16 & 28 : 23-Oct-18

WorleyParsons will acquire the resources arms of US engineering firm Jacobs in a transaction valued at $4.6 billion. WorleyParsons CEO Andrew Wood says the deal, which is hoped to be completed in the first half of 2019, will create the world’s biggest provider of professional engineering services to the mining, oil and gas sectors. The transaction will see Jacobs acquire a stake of around 11 per cent in WorleyParsons, while Wood says he does not expect the deal to result in any major job losses across the two businesses.

CORPORATES
WORLEYPARSONS LIMITED – ASX WOR, JACOBS ENGINEERING GROUP INCORPORATED, DAR GROUP

Ichthys key to CIMIC bid for UGL

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 15/20 : 11-Oct-16

Shares in listed engineering contractor UGL closed 48.6 per cent higher at $A3.18 on 10 October 2016, in response to a takeover bid from CIMIC Group. The cash offer of $A3.15 per share values the bid at $A524m, but Allan Gray Australia MD Simon Mawhinney argues that it will be difficult to assess the bid until UGL updates investors on its Ichthys LNG contracts. UGL’s 2015-16 financial accounts included a provision of $US200m associated with its Ichthys construction contracts.

CORPORATES
UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, ALLAN GRAY AUSTRALIA PTY LTD, CITIGROUP PTY LTD, HOCHTIEF AG, GRUPO ACS, MACQUARIE GROUP LIMITED – ASX MQG, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, UBIQUE ASSET MANAGEMENT PTY LTD, DEVINE LIMITED – ASX DVN, SEDGMAN LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Bradken board backs Hitachi bid

roymorgansocial Leave a comment

Original article by Paul Garvey, Bridget Carter
The Australian – Page: 17 & 19 : 4-Oct-16

Directors of listed mining services group Bradken have endorsed a takeover bid from Hitachi Construction ­Machinery. The offer of $A3.25 per values Bradken at $A688.5m, or $A976.1m when its debt is included, and is 34 per cent higher than the stock’s last trading price. The Japanese suitor boasts annual sales of $A10bn and a market capitalisation of $A5.5bn. President and CEO Yuichi Tsujimoto says the two companies’ operations are complementary.

CORPORATES
BRADKEN LIMITED – ASX BKN, HITACHI CONSTRUCTION MACHINERY COMPANY LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, BAIN CAPITAL LLC, KOCH INDUSTRIES INCORPORATED, CHAMP PRIVATE EQUITY PTY LTD, SIGDO KOPPERS SA, EMECO HOLDINGS LIMITED – ASX EHL, AUSENCO LIMITED – ASX AAX, CARDNO LIMITED – ASX CDD, SEDGMAN LIMITED

CIMIC in $256m hostile bid for Sedgman

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 14-Jan-16

Australian-listed CIMIC Group is seeking full ownership of engineering firm Sedgman, in which it holds a 37 per cent stake. Sedgman’s shares closed at $A0.79 on 13 January 2016, compared with CIMIC’s cash offer of $A1.07 per share. Sedgman will commission an independent expert’s report before making a recommendation to shareholders regarding the bid. CIMIC launched the bid after Sedgman rejected a number of requests, which included a second board representative.

CORPORATES
CIMIC GROUP LIMITED – ASX CIM, SEDGMAN LIMITED – ASX SDM, GRUPO ACS, HOCHTIEF AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BARMINCO PTY LTD, AUSDRILL LIMITED – ASX ASL, MORGANS FINANCIAL LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, DEVINE LIMITED – ASX DVN

Crescent lobs $215m bid for Cardno majority stake

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 15-Sep-15

Private equity firm Crescent is seeking a controlling stake in Australian-listed Cardno. Crescent is offering $A3.15 for one of every two shares held by shareholders in the engineering firm. The announcement of the $A215 million bid triggered a rise of as much as 16.4 per cent in Cardno’s share price on 14 September 2015.

CORPORATES
CARDNO LIMITED – ASX CDD, CRESCENT CAPITAL PARTNERS LIMITED

More mining collapses ‘inevitable’

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 29-Jun-15

KordaMentha’s Scott Langdon expects more Australian mining services groups to experience financial problems in 2015. He says privately-owned firms whose turnover is below $A50m are most vulnerable to insolvency. However, Langdon adds that investors and lenders will seek alternatives to insolvency such as debt restructuring deals. He also forecasts an increase in cost reduction measures in the resources sector, such as staff and wage cuts, as well as the departure of some CEOs.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, BRADKEN LIMITED – ASX BKN, BIS INDUSTRIES LIMITED, ATLAS IRON LIMITED – ASX AGO, SIGDO KOPPERS SA, CHAMP PRIVATE EQUITY PTY LTD

Bradken told to engage suitors

roymorgansocial Leave a comment

Original article by Amanda Saunders, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 15 : 7-Apr-15

Shares in Bradken closed at $A2.29 on 2 April 2015. The stock peaked at $A2.35 in response to revelations that Pacific Equity Partners and Koch Industries had made a takeover offer pitched at $A2.50 per share. The former had previously joined forces with Bain Capital to offer $A5.10 per share for the mining services group. Bradken directors have spurned the latest offer, arguing that it is too low

CORPORATES
BRADKEN LIMITED – ASX BKN, PACIFIC EQUITY PARTNERS PTY LTD, KOCH INDUSTRIES INCORPORATED, BAIN CAPITAL LLC, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED

Spaniards play hardball with Transfield

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 13 & 18 : 3-Nov-14

The directors of Australian-listed Transfield Services in mid-October 2014 rebuffed an indicative takeover bid worth $A1.95 a share, received from Spanish group Ferrovial. The latter is now refusing to sign a confidentiality agreement put forward by the facility management company, to gain access for due diligence. The suitor argues the terms and conditions are excessively onerous, while Transfield maintains they are standard procedure. The directors will detail the reasons for rejecting the offer at the AGM on 5 November. Ferrovial may yet sweeten the already fairly priced offer

CORPORATES
TRANSFIELD SERVICES LIMITED – ASX TSE, GRUPO FERROVIAL SA, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, UGL LIMITED – ASX UGL, STEEL INGENIERIA LIMITADA, ENTERPRISE PLC

UGL looks for fresh start after DTZ sale

roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 15& 20 : 9-Jul-14

Engineering firm UGL is seeking a new direction after the sale of its DTZ property services business. Chairman Trevor Rowe confirmed his retirement and will be replaced by Kate Spargo at the AGM in October 2014. Ross Taylor will also replace CEO Richard Leupen in October. Spargo plans to renew the board. The completion of the sale of DTZ will leave UGL with about $A500 million in cash. It will reduce its debt and return cash to shareholders

CORPORATES
UGL LIMITED – ASX UGL, DTZ AUSTRALIA PTY LTD, CALTEX AUSTRALIA LIMITED – ASX CTX, TRANSFIELD SERVICES LIMITED – ASX TSE, TABCORP HOLDINGS LIMITED – ASX TAH, ARGO INVESTMENTS LIMITED – ASX ARG, SONIC HEALTHCARE LIMITED – ASX SHL, FLETCHER BUILDING LIMITED – ASX FBU, HANG SENG BANK LIMITED, MTR CORPORATION LIMITED, TENIX PTY LTD, TPG CAPITAL LP, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED