Kentz rejects AMEC offer

Engineering and construction specialist Kentz has rejected a takeover approach from AMEC

Engineering and construction specialist, Kentz, has rejected a takeover approach from AMEC, which employs around 1,000 people in the North East and has offices in Darlington, Newcastle, Wynyard and North Shields.

AMEC offered 565 to 580 pence per share on August 5, compared with the Friday closing price of 476 pence.

The German M+W Group has also made an offer for Kentz, but both approaches were rejected by the board on the grounds that they undervalue the company.

AMEC provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors.

In a statement posted on the Stock Exchange, it said the acquisition would “extend AMEC’s geographic footprint in the Growth Regions, increase the range of services offered to clients, and enhance AMEC’s position in two of its core markets; oil & gas and mining.”

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