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