Amec Foster Wheeler logo

AMFW - Amec Foster Wheeler News Story

$7.01 -0.0  -0.6%

Last Trade - 06/10/17

Sector
Energy
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £4.93bn
Position in Universe th / 6715

UPDATE 1-Australia's WorleyParsons to buy AFW's former oil & gas assets for $298 mln

Mon 9th October, 2017 12:34am
(Adds details about sale, Amec merger background, paragraphs 
2-7) 
    Oct 9 (Reuters) - Australian engineering firm WorleyParsons 
Ltd  WOR.AX  said on Monday it would buy the former upstream oil 
and gas assets of Britain's Amec Foster Wheeler Plc  AMFW.L  for 
228 million pounds ($298.22 million), marking its entry into the 
UK North Sea market. 
     WorleyParsons expects to tap Amec's maintenance, 
modifications and operations capabilities through the deal, 
which is to be funded by a 1 for 10 entitlement offer of 
approximately A$322 million ($250.36 million) and existing 
WorleyParsons debt facilities at A$13 per new share. 
    The enterprise value will be A$303 million before 
adjustments for surplus working capital and cash in the AFW UK 
business, the statement said. 
    The deal is expected to reduce net debt and be accretive to 
WorleyParsons' earnings per share in the first year of 
ownership, and is expected to be completed by the end of 
October. 
    The sale is an attempt by Amec to get regulatory approval 
for its merger with John Wood Group  WG.L .  urn:newsml:reuters.com:*:nL4N1L12ID 
    Britain's Competition and Markets Authority (CMA) said in 
August the merger could lead to competition concerns in the 
supply of engineering and construction services and operation 
and maintenance services on the UK continental shelf. 
 urn:newsml:reuters.com:*:nL5N1KO4G5 
    The CMA said later that month that divesting almost all of 
Amec's upstream offshore oil and gas servicing assets may be 
adequate for regulatory approval for the merger. 
    
 ($1 = 1.2863 Australian dollars) 
 
 ($1 = 0.7645 pounds) 
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Byron Kaye 
and Paul Tait) 
 ((susan.mathew@thomsonreuters.com; +91-80-6749-1130; Reuters 
Messaging: susan.mathew.thomsonreuters.com@reuters.net)) 
 
Keywords: AMEC FOSTER M&A/WORLEYPARSONS
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