Trading recommenced in Worley shares on the ASE on Monday 11 October. By midday Tuesday West Australian time shares had surged to $5.12 – significantly higher than the $4.10 minimum Worley had been seeking.
The equity raising operation comprises an institutional entitlement offer of 15% of Worley’s existing capital base to raise $92 million (22.4 million new shares) and a retail entitlement offer to raise an additional $136 million (33.2 million new shares). The total equity raising of $228 million was arranged and underwritten by UBS.
The institutional component of Worley Ltd’s equity raising offer to fund the acquisition closed oversubscribed on October 8 at a final price of $4.10 per share – a 3.8% premium to the closing price before the offer was announced.
The offer’s retail component looks likely to be even more successful. With its new war-chest Worley seems set to become one of the world’s leading oil and gas engineering service providers.
US-based Parsons E&C Corporation is an engineering, procurement, project management and construction management service provider with offices in 16 countries. The combined group will have 59 offices in 29 countries and more than 9500 personnel with a wide range of specialist skills.
All existing shareholders can take part in Worley’s entitlement offer on the basis of a pro rata entitlement of two new shares for every nine existing shares held.
The retail entitlement offer is expected to close on Wednesday 3 November.
