This article is from the Australian Property Journal archive
MAJOR Belgian construction player Besix has renewed its takeover intentions for Brisbane-based Watpac, lobbing a new $169 million cash bid just months after its failed to muster shareholder support for its initial acquisition attempt.
If successful this time around, Besix, Watpac’s major shareholder, intends to continue operating Watpac as a standalone entity and under its current name.
Watpac has recommended the offer, as it had the previous bid that would have seen Besix take its 28.1% stake to 64.1%, and acquire 50% of the issued shares in Watpac it does not already own at $0.92 per share, at a 37.3% premium to Watpac’s last closing price and valuing it at $168.7 million.
The latest offer, is as a 40.5% premium to Watpac’s closing price on Friday of $0.66 per share.
“Whilst the Besix Group is a global business, it operates largely outside of Australia. Besix believes that the proposed acquisition of an increased stake in Watpac presents an opportunity for a combined group to implement a service offering which is geographically diversified, has broader operational capabilities and will enhance overall competitiveness,” Besix managing director and CEO Rik Vandenberghe said.
“Whilst preserving its Australian identity, Besix is seeking to increase its ownership to obtain a controlling interest in Watpac and Besix intends to expand its strategic support including putting its extensive, innovative and international track record and expertise behind the Watpac brand, providing Watpac with an enhanced technical and technological edge such as direct access to Besix’s world-class engineering platform (including Building Information Modelling capabilities), and assisting Watpac to diversify its services offering.”
Besix has recently been acive on two 2022 FIFA World Cup Stadiums in Qatar, various public-private partnership projects in the transport segment, waste water treatment plants and public service buildings, as well as the passenger terminals at Brussels, Paris and Doha International Airports.
In Australia, it has mainly been active on marine projects in Western Australia, where it is the design and build contractor for Fortescue Metals Group’s new tug infrastructure in Port Hedland, and held the design, procurement and construction contract for a series of marine works on Chevron’s Wheatstone LNG Project.
Australian Property Journal
