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Kentz agrees £1.2bn Canadian takeover

Kentz agrees £1.2bn Canadian takeover

Kentz (LON:KENZ) has agreed to a takeover from Canadian group SNC-Lavelin after rejecting two competing offers from Amec and M+W last year.

Shares in the oil services group surged by a third as news emerged, with the deal valuing each Kentz share at 935p and the oil services group overall at about £1.2bn.

The offers last year were pitched at around £700mln or 580p per share, but both were rejected as undervaluing the company.

SNC- Lavelin said it expects the acquisition to be earnings accretive in the first full financial year and deliver strong financial benefits, including estimated annual cost savings of C$50mln.

The combined headcount will be about 44,500, of which 18,500 employees will be focused in the oil & gas sector.

Kentz’s board is recommending the offer, which “recognised the future prospects, world-class client base, and our excellent people; the ultimate assets of our business,” added Christian Brown, Kentz’s chief executive.

Shares jumped 227p to 929p.

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