Bosses at STATS Group say it is “business as usual” after a deal to sell the Aberdeenshire pipeline specialists collapsed.
It was announced at the end of 2021 that Australia-listed SRJ Technologies (ASX: SRJ) had struck a £73 million deal to acquire the Kintore-based firm.
But it has now been revealed that a share purchase agreement to sell 100% of the issued share capital of STATS to SRJ will not go ahead.
The decision was blamed on “market volatility” caused by world events.
SRJ had planned to undertake an offer of shares to fund the deal and provide working capital for the combined group.
The publicly listed company has now notified the Australian Securities Exchange that the transaction will not proceed.
Though it “continued to believe in the merits of the merger”, underlying “macro, geopolitical and supply chain events” mean it will no longer go ahead.
A statement said: “SRJ and its advisors explored several Australian and global funding alternatives to raise the capital required to complete the Transaction but the significant changes to underlying market conditions since the start of 2022 made this extremely challenging. The acquisition of STATS will not proceed and the Share Purchase Agreement executed on 14 December 2021 will be terminated.”
SRJ and STATS confirmed they will continue to collaborate at an operational level in multiple regional markets, including the UK, Canada, USA, Middle East and Asia Pacific.
STATS currently employ 320 staff across the globe, 160 of which are located in the UK.
Leigh Howarth, STATS chief executive, said: “We have worked closely with the SRJ team to deliver this deal but due to a combination of factors outwith our control we have not been able to conclude the fundraising and therefore the transaction will not complete.
“STATS remains in great shape and it is business as usual as we take advantage of some tremendous opportunities, particularly in the Middle East and North America. We will focus on delivering client projects safely and efficiently while continuing to work collaboratively with SRJ to capitalise on the synergy between both organisations.”
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