The board of engineer Kentz has rejected takeover proposals from Amec and German group M&W, it announced today.
In a statement, Kentz said a “highly conditional and unsolicited proposal” was made by Amec which valued Kentz at 565p-580p per share in cash.
Kentz said this undervalued the company and its board unanimously rejected the approach.
Amec confirmed it made the approach on 5 August, following an earlier approach on 11 July. It said the making of any firm offer would be “subject to the satisfaction of a number of pre-conditions including… due diligence and the recommendation of the board of Kentz”.
Amec believes the deal would extend its geographic footprint in the growth regions, increase the range of services offered to clients, and enhance its position in oil and gas and mining.
In a statement, Amec said: “Amec believes the proposed offer represents a highly attractive opportunity for Kentz and its shareholders, though it has been rejected by the board of Kentz.”
It said the “possible offer” from M&W was at a lower indicative value than that of Amec.
Kentz will issue its financial results for the six months to 30 June on Tuesday 27 August.