Kentz shareholders approve takeover by Canadian rival

Acquisition by SNC-Lavalin values Tipperary-based engineering group at €1.16 billion

 

Shareholders at Irish engineering firm Kentz have approved the takeover of the business by Canadian rival, SNC-Lavalin.

The acquisition, which remains subject to a number of conditions, values the Tipperary-based group at €1.16 billion.

SNC-Lavalin said Kentz shareholders would receive 935 pence sterling per share, a 33 per cent premium to the closing quote for its stock on Friday in London.

At an extraordinarty general meeting today, 99.3 per cent of Kentz shareholders voted in favour of the deal, which had already been backed by the boards of both companies.

SNC-Lavalin said the acquisition would give it a much greater presence in key growth regions such as the Middle East, North America and Asia Pacific.

It also said it expected the Kentz deal to boost its earnings within the first full financial year, with annual cost synergies put at €34 million.

Based in Clonmel, London-listed Kentz provides which provides engineering services for the global oil, mining and pharmaceuticals industries, and operates in over 27 countries.

In June, Kentz chief executive Christian Brown said although the board believed the company had a strong future as an independent business, “it considers the cash offer substantially recognises the company’s growth prospects, providing certainty, in cash, to Kentz shareholders”.

The Irish company, whose customers include Shell and Exxon Mobil, transferred to London’s main exchange from its Alternative Investment Market in 2011 and is now included in the FTSE 250 index