Shares in engineering services group WorleyParsons are surging after the company revealed a confidential takeover offer had been made three months ago.
A short time ago, WorleyParsons shares were up 30% to $10.53.
The shares took off after Dar Group, a privately owned international network of professional services firms, went on market to acquire 13.35% of the issued shares of WorleyParsons.
“Dar Group views WorleyParsons as the preeminent energy and design consultancy globally,” the company said.
WorleyParsons today confirmed that it had in November last year received a confidential takeover offer from the Dar Group at $11.80 a share.
However, the board of directors at WorleyParsons say they rejected the bid as materially undervaluing the company.
“The proposal was also highly conditional in relation to financing, due diligence, process, regulatory and other conditions which created significant execution risk and uncertainty for the company,” the directors said.
Today the Dar Group said it has no “present intention” of talks with WorleyParsons on a change of control transaction.
The end of the mining boom is still hitting WorleyParsons hard but the bottom may be near.
The engineering services group earlier this month posted a half year loss of $2.4 million for the six months to December and decided not to pay a dividend to shareholders. Revenue was down 35% to $2.72 billion.
WorleyParsons says market conditions remain challenging but customer sentiment is improving.