Lead Text: 
EC Harris owner says there is 'compelling rationale' behind offer

Dutch engineering consultancy Arcadis has launched a $433.4mn takeover bid for Hyder Consulting.

Arcadis, which also owns the EC Harris project management business, has offered 650p per share for Hyder, which is a 40% premium on the average price in the three-month period prior to the offer being made.

In a statement, Arcadis said there was a "compelling strategic rationale" for the bid, stating that the firms worked in complementary geographies and markets. Hyder's board has recommended the bid to shareholders.

Hyder has a strong regional presence, having operated in the region for more than 110 years. The firm has worked on flagship projects such as the Burj Khalifa and Emirates Towers, and it is currently working on scores of Qatar infrastructure projects as well as a joint venture with Jeddah Municipality to train engineers and help deliver public works packages.

In the year to March 31, the company had revenues of just over $500mn - $147.8mn of which was generated in the Middle East. Its pre-tax profits were $9.1mn.

Hyder chief executive Ivor Catto said: "Arcadis’ recommended cash offer represents a significant premium to Hyder’s current share price.

"Although the Board believes that Hyder has a strong future as an independent business, it considers that this cash offer substantially recognises Hyder’s growth prospects, and provides certainty, in cash, to our shareholders today.

"The resultant group should also provide further opportunities for our highly valued clients and staff.”

 

Article Context: 
News
Michael Fahy
Story Relations: 
Hyder grows Middle East order book
Face to Face: Wael Allan, Hyder Consulting
Arcadis hails regional opportunities
Media Embed: 
Published Date: 
Thursday, July 31, 2014 - 10:55
Parent Source id: 
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Modified Date: 
Thursday, July 31, 2014 - 10:55
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