Canada’s SNC-Lavalin Group has offered to buy British engineering and consultancy firm WS Atkins for 2,080 pence per share, Atkins said on Monday.
The all-cash offer represents 35 per cent premium to Atkins’ Friday close at 1,540 pence and values the proposed deal at £2.08 billion (Dh 4.59bn).
“The board of Atkins has indicated to SNC-Lavalin that the possible offer would deliver value to Atkins shareholders at a level that the board would be prepared to recommend, subject to reaching agreement on the other terms and conditions of the offer,” Atkins said.
SNC made a tentative offer to buy the England-based company, which has long had a major presence in the UAE. Atkins’ work on the world famous 56-storey 321m Burj Al Arab ultra-luxury hotel in Dubaiincluded architecture, civil and structural engineering, MEP engineering, construction supervision and cost consultancy services. The UK firm said discussions are under way about other terms and conditions of the Canadian proposal.
Buying Atkins would strengthen SNC’s foothold in Europe, which accounted for only 5.3 per cent of the Canadian company’s sales last year. Atkins got almost half its revenue there. SNC reported its biggest annual profit gain since 2007 last year, and the chief financial officer Sylvain Girard said in January that the company was looking for acquisitions of as much as US$3 billion.
Atkins shares surged 29 per cent to 1,990 pence at 2:22pm in London after gaining as much as 30 per cent, the biggest intraday jump on record. The company provides engineering, design and project management services for big construction projects, notably in transportation infrastructure.
Louis-Antoine Paquin, a spokesman for SNC in Montreal, did not immediately respond to a request for comment.
There is no guarantee a firm offer will be made, Atkins said. Moelis and JP Morgan are advising the UK company.
* Agencies
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