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UK: Wood Group launches takeover of Amec Foster Wheeler

By  |  March 13, 2017

Wood Group, the Aberdeen-based oilfield services company, has offered a £2.2bn buyout of its troubled rival Amec Foster Wheeler.

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    The offer of 0.75 new Wood Group shares for each existing Amec Foster Wheeler share has been recommended by Amec’s board.

    This offer comes a week before Amec was due to go cap in hand to shareholders to raise money through a £500m rights issue to bolster its balance sheet.

    Amec has £1bn of debt and has been shedding assets in order to pay it down.

    Wood Group said that, based on its closing share price on Friday of £7.52, the offer represented £5.64 per Amec share – a premium of 15.3 per cent to Amec’s closing share price of £4.89 before the weekend.

    Amec’s shareholders will own around 44 per cent of the combined group.

    Full Content: Financial Times

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