Watpac shares fly as BESIX says it now wants all of the contractor
Global contractor BESIX Group has made another generous unconditional off-market takeover bid for Australian contractor Watpac – this time for the whole company.
The offer price of 92c per share is a 40.5 per cent premium to the last closing price of 66c per share.
The Watpac (ASX:WTP) share price immediately shot up to the 92c offer price in morning trade.
BESIX – which already owns 28.1 per cent of Watpac – made a 92c per share offer for an additional 35.95 per cent stake in February this year.
This offer was spurned by Watpac shareholders in June due to “the proportional nature of the scheme” – to address this, BESIX now intends to acquire the rest of the shares it doesn’t own.
The Watpac board unanimously recommended shareholders accept the offer.
In April, Watpac revealed it was considering selling its mining business after failing to secure two major projects.
Despite revenues of over $1 billion in FY18, the company recorded a loss before tax of $46.9m – its fourth loss in six financial years.