20th May 2019 08:54
LONDON (Alliance News) - Professional services firm WYG PLC on Monday said it agreed to an all-cash takeover offer from much-larger US-based peer Tetra Tech Inc.
The offer, which values WYG at GBP43.4 million, will see shareholder receive 55 pence in cash per WYG share held.
WYG shares were untraded on Monday morning. On Friday the stock closed at 15.02 pence.
Nasdaq-listed Tetra Tech is based in Pasadena, California and has a market capitalisation of USD3.64 billion.
"The combination of Tetra Tech and WYG will represent a premier international consulting, engineering and program management firm, and, with WYG's leading positions and expertise in international development, environment, infrastructure and water, will leave WYG well-positioned to provide a strong platform to drive long-term growth within the broader combined group," the companies explained.
The directors of WYG consider the terms of the takeover to be "fair and reasonable" and unanimously recommend shareholders to accept the offer.
So far, Tetra Tech has received irrevocable undertakings from all the WYG directors and from AB Traction, Robert Keith and Canaccord Genuity Wealth Management in respect of 35.3% of WYG share capital.
Furthermore, Tetra Tech has also received non-binding letters of intent from Artemis Investment Management, Slater Investments and Janus Henderson Investors in respect of a further 37.0% of WYG shares.
Therefore, Tetra Tech has in total secured irrevocable undertakings and letters of intent in respect of 53.1 million shares or 72.5% of WYG's capital.
The acquisition is expected to become effective in July.
WYG Chair Jeremy Beeton said: "Becoming part of the Tetra Tech Group enables benefits of scale and access to expertise across highly complementary geographies and client relationships, and brings operational infrastructure and financial strength to support WYG's long term growth ambitions.
"We provide Tetra Tech with a strong platform for investing in growth in the UK and Europe. We believe the combination of our two companies will provide greater opportunities for our people and clients, as well as offering certainty of immediate value to our shareholders at a considerable premium to the prevailing share price."