Engineering firm Kentz says it has turned down takeover approaches from prospective suitors Amec and M&W group.
The company, which focuses on the oil and gas, petrochemical and mining sectors, confirmed it had received a bid from Amec that valued the company at between 565p and 580p a share.
“The board reviewed this proposal in conjunction with its advisors and concluded that it undervalued the company and therefore unanimously rejected the approach,” Kentz said in a stock market statement this morning.
Kentz said it was not considering any other offers, nor was it looking at a strategic review ahead of a possible sale.
Amec said at the start of the month it was looking to make acquisitions in the second half of the year in the oil and gas market – although it would consider a cash return for shareholders if it failed to make such a deal.
Earlier this morning M&W confirmed it had made an indicative offer to Kentz last month, which had also been turned down.
“M+W Group notes the recent press speculation and confirms that it submitted an indicative offer for Kentz in early July, which was rejected by the Kentz Board, and that it is still considering its options which may or may not result in a cash offer being made for Kentz,” the company said.
“There can be no certainty that any offer will be made, nor as to the terms of any offer. A further announcement will be made when appropriate.”
Both companies now have until September 16 to make a firm offer for Kentz or to walk away from a possible takeover.
Kentz employs 14,500 staff and spans oil and gas, chemicals, mining and metals. It traces its roots back to 1919 as an electrical contractor in Tipperary, Ireland, and works on small to medium-sized projects from bases across the globe.
The company is registered in Jersey but has no central headquarters, with its management spread across the world.
Recent big projects include electrical wiring on a giant gas platform in Australia and installing a telecoms network at an oil sands project in Canada.
It earned pre-tax profits of $104.8million on revenues of $1.56billion.
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