WSP Global has bid for majority stake in NZ-based Opus International accepted

By zaymalz malz
Share

Engineering solutions company WPS Global, known for its contributions to the Shard in London and New York’s Freedom Tower, has had a bid for the majority stake in New Zealand infrastructure consultancy firm Opus International accepted.

Opus’s majority shareholder, UEM Edgenta Bhd, has agreed to sell the entirety of its 61.2% stake in the business to the Canadian company.

The deal has WSP Global offering an 86.9% premium, paying $1.85, including a $0.07 cash dividend, per share for Opus which closed at $0.99 last week.

It is understood that Opus has been in a period of decline for some time, with a recorded $29.9mn loss in the calendar year of 2016.

See Also:

However, WSP Global’s Chief Executive Alexandre L'Heureux remains confident in the deal, stating that the merger will allow Opus to “greatly leverage WSP's customer base and strong international brand equity to significantly bolster its positioning and growth outside of New Zealand”. 

Opus floated for as much as $1.65 per share back in 2009, and has exceeded the $2 mark in the past three years, meaning the deal will provide long term investors the opportunity to recuperate any losses that they have seen with the company in the past 18 months.

Simultaneously, the deal will give WSP a greater platform in the markets of Australia and particularly New Zealand, where Opus has a significant market presence with 1,800 staff and 40 offices.

“We’re a global engineering firm but we have a very small presence in New Zealand. We have 100 employers, so to be in a position to merge with a firm like Opus was really attractive,” said L’Heureux.

Share

Featured Articles

What is Nestlé CEO Laurent Freixe’s Action Plan?

Newly appointed CEO sets out action plan involving separating water brands into standalone business and boosting advertising and marketing spend

Will Mulberry Turn a New Leaf Under CEO Andrea Baldo?

International British luxury brand cuts quarter of head office staff as newly appointed CEO conducts strategic review

Female Board Members of Biggest UK Companies Paid 69% Less

Female board members of FTSE 100 companies are paid 69% less than male counterparts, as they find themselves frozen out of the biggest roles

Is This the Next CEO of LVMH?

Leadership & Strategy

How Burberry’s New CEO Is Going Back to Basics

Leadership & Strategy

Is Bayer CEO Bill Anderson Running Out of Time?

Leadership & Strategy