Irish founded engineering group Kentz is subject to takeover speculation linking British engineer Amec to an €938m bid as Amec attempts to grow its oil and gas division. Kentz said on Monday it had rejected takeover approaches from larger London-listed rival AMEC (and German group M+W Group, saying both undervalued the company.
In the start of a potential bidding war, both AMEC and M+W confirmed they had made offers for Kentz, with AMEC offering 565 to 580 pence per share on August 5, compared with the Friday closing price of 476 pence.
Kentz said the M+W offer was lower than the one from AMEC, and both had been unanimously rejected by the board.
The offer from AMEC, which provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors, valued Kentz at around 680 million pounds, compared to a market cap of 561 million pounds.
AMEC said the acquisition would “extend AMEC’s geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC’s position in two of its core markets; oil & gas and mining.”
Amec told reporters at the start of the month it was looking to make acquisitions in the second half in the oil and gas sector, and if no deals were forthcoming it would consider a cash return for shareholders.