Market participants are on standby for an anticipated block trade involving WorleyParsons, with superannuation funds said to be angling for an acquisition of Jacob Engineering’s $780m stake in the company.
Worley announced to the market on Friday that the 51 million shares owned by Jacobs are due for escrow release on December 23. They amount to a stake of about 9.8 per cent.
It is believed super funds are among those that have an interest, but it is also understood that a number of parties are pitching to buy the stake.
Worley’s market value is now $7.92bn after it last year announced a $US3.2bn acquisition of Jacobs Engineering’s energy, chemicals and resources division.
The deal was completed in April, making Worley a global provider of professional project and asset services in energy, chemicals and resources in 51 countries.
As part of the deal at the time, Jacobs was to own about 11 per cent of the enlarged Worley after the transaction.
No doubt many will be watching with interest to see if AustralianSuper emerges as a buyer after it was involved with two takeover attempts last year, working in conjunction with BGH Capital.
AustralianSuper and BGH purchased Navitas this year after offering $2.1bn for the business.
The fund, with Navitas founder Rod Jones, who was also part of the bid, owned 12.4 per cent of Navitas at the time, and the education provider criticised the “lock up” bidding tactic by BGH.
Both AustralianSuper and BGH Capital also tried to buy Healthscope, but it was instead sold to Brookfield.
AustralianSuper was also a Healthscope shareholder.
The Worley stake would be highly attractive to any party eager to capitalise on takeover interest in the firm.
The company has in the past been subject to an attempted takeover by the Middle Eastern company Dar, which now owns a 22.78 per cent stake in the business, according to Bloomberg data.
Should Dar at some stage launch a fresh bid for the business, it could prove a lucrative investment for the holder of almost 10 per cent of the stock. Dar offered $2.9bn for the company in 2016.
In recent months, a major feud broke out between Dar and Worley, with Worley sending a letter to the Foreign Investment Review Board outlining its reasons for opposing moves by Dar to increase its stake in the company.
Dar had been seeking help over the matter from its adviser Rothschild and had wanted to enter into a business co-operation agreement with Worley.
However, Worley believed entering into such an agreement was not in shareholders’ interests.
Investment bank UBS is working with Worley.
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