New Zealand's Opus eyes Middle East project market
Engineering firm eyes GCC project bidding after Christchurch rebuild
Wellington-based Opus International Consultants has asked its shareholders to approve a joint venture with its Malaysian sister firm in order to better target the Middle East market.
The Middle East partnership between Opus and Opus International (Malaysia) Berhad (OIMB) will need seed funding of $125,000 from each partner, and will target consultancy and project management work in Saudi Arabia, Qatar, the UAE, Bahrain, Kuwait and any other agreed countries.
However, before this is possible, shareholders will vote on whether to approve the deal allowing Opus to provide services or capital in excess of NZSX listing rules limits without investor approval.
The JV’s board would have two directors from Opus and three (including a chairman) from OIMB.
The deal, to be weighed at Opus’ AGM in the Christchurch on April 20, has been deemed fair according to an independent appraisal report by PwC's Richard Longman and David Bridgman.
One of four engineering firms mandated to design the rebuild of Christchurch following the damage by the magnitude-6.3 earthquake, Opus's shares have shed 11% this year and the stock averaged 'outperform' based on four recommendations compiled by Reuters, with a median target price of $2.20.