Canada's SNC-Lavalin to buy WS Atkins in $3.6 bln deal

Shutterstock photo

UPDATE 1-Canada's SNC-Lavalin to buy WS Atkins in $3.6 bln deal

(Adds details, background)
    April 20 (Reuters) - Canadian engineering and construction
company SNC-Lavalin Group Inc <SNC.TO> on Thursday offered to
buy British engineering and consultancy firm WS Atkins Plc
<ATKW.L> for $3.6 billion, firming up an indicative offer it
made earlier this month.
    SNC-Lavalin's offer of 2080 pence($26.66) per Atkins share
in cash, is the same as the indicative offer Atkins had
disclosed on April 3. The offer represents a 35.1 percent
premium to the stock's closing price on March 31.
    Atkins had said at the time that SNC-Lavalin had until May 1
to either make a firm offer or withdraw, according to the City
Code on Takeovers and Mergers applicable to British companies.
    Canadian pension fund Caisse de depot et placement du Quebec
(CDPQ), SNC's biggest shareholder, will extend a loan of $1.5
billion to SNC and buy $400 million of equity in the
Montreal-based company, to help finance the acquisition.
    The loan will be secured by the value and cash flows of
SNC-Lavalin's interest in the Highway 407 ETR project in
Ontario, CDPQ said separately on Thursday.
    SNC's funding will also include an $800 million public
bought-deal offering, the company said.
    SNC said it expects the deal to generate about $120 million
in cost savings.
    RBC was SNC's financial adviser, while Norton Rose Fulbright
provided legal counsel.
    The transaction is expected to close in the third quarter of
2017, SNC said.

($1 = 0.7802 pounds)

 (Reporting by John Benny in Bengaluru; Editing by Sai Sachin
 (( ; within U.S. +1 646 223 8780;
outside U.S. +91 80 6749 6718; Reuters Messaging:


This article appears in: World Markets , Stocks
Referenced Symbols: ATKW

More from Reuters


See headlines for ATKW

Follow on:

Research Brokers before you trade

Want to trade FX?