24th Jun 2016 17:17
LONDON (Alliance News) - Dar Group's Currie & Brown Holdings Ltd is set to acquire Sweett Group PLC, the AIM-listed construction consultancy, for GBP29 million, the companies said on Friday.
In a statement, the companies said that Currie & Brown will buy Sweett for 42 pence per share in cash, valuing the company at GBP29 million.
The offer is a premium to Sweett's closing share price of 23p on May 24, which was the last business day before the start of the offer period for previously agreed takeover offer for Sweett from WSP Global Inc.
Shares in Sweett closed unchanged at 34.50p on Friday, giving the company a market capitalisation of GBP23.7 million.
The Sweett directors intend unanimously to recommend that Sweett shareholders accept the takeover offer from Currie & Brown, withdrawing their recommendation for the offer from Canadian engineering consultant WSP Global, which was for 35p per share.
WSP had made the GBP24 million offer for Sweett in May.
John Dodds, chairman of Sweett, said that "in light of the unwillingness" of Bank of Scotland, the company's lender, to extend borrowing facilities beyond July 8, when they are due to expire, the directors have also taken into account Currie & Brown's provision of a liquidity facility.
Currie & Brown made an offer of a term debt facility of GBP9.5 million in addition to the equity offer, Sweett said.
"Furthermore, the Sweett directors consider that the offer provides an attractive premium to the price per Sweett share prior to commencement of the offer period ,and the WSP Proposal and allows all Sweett shareholders to realise their investment in cash," Dodds said.
By Samuel Agini; [email protected]; @samuelagini
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