CIMIC Group Ltd has announced that it intends to make an offer to acquire UGL Ltd through its wholly owned subsidiary, CIMIC Group Investments No.2 Pty Ltd (CGI2).
CIMIC, which already owns 13.84% of UGL, will make a final unconditional offer to acquire the remaining shares in UGL pursuant to an offmarket takeover at a price of $3.15/share.
The Offer Price represents a 47.2% premium to the last close price, being the price of ordinary shares in UGL on ASX at the close of trading on 7 October 2016.
CIMIC said that it believes UGL’s competencies are complementary to its existing operations or enhance CIMIC’s capabilities in new activities.
Following the conclusion of the Offer, CIMIC stated that it intends to conduct a strategic review of UGL’s businesses in order to drive operational efficiencies and improvements to project delivery and analyse the composition and value of UGL's assets.
In response, UGL released a statement confirming that its Board will meet as soon as possible to consider the offer and will provide further advice to shareholders at that time. In the meantime, the Board of UGL is recommending that shareholders take no action in relation to the CIMIC announcement.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10102016/cimic-makes-takeover-bid-for-ugl/