SNC Lavalin raises money for Atkins buyout
SNC Lavalin, the Canadian engineering and construction company that has made a Â£2.1 billion (Dh9.98bn) offer for the UK-based Atkins Group, has announced that it has raised more than $1.2bn to help pay for the deal. The firm has raised more than C$880 million (Dh2.36 billion) through a public offering of subscription receipts and more than C$400m through a private placement of subscription receipts with Canadian pension fund Caisse de dÃ©pôt et placement du QuÃ©bec.
The company said that the amount raised would sit in an escrow account until July 31, by which time it expects to close the deal, subject to regulatory and court approvals (which will need to be in place by October 27).
If no deal has been agreed by that time the money will be returned, with any interest earned during that period also being distributed back to shareholders on a pro-rata basis.
The merger between the two organisations will create a combined entity with combined revenues of over C$12bn and 53,000 employees. The Middle East and Africa will be the biggest region in terms of employees, with 19,625 staff according to documents filed by SNC Lavalin explaining the merger.
SNC Lavalin employs around 11,000 staff in the Middle East region alone, while Atkins employs about 2,400.
SNC Lavalin also announced on Thursday that it had been chosen by Saudi Aramco to provide engineering and project management services for its Berri Increment programme, through which it is looking to boost output from the Berri field on the country’s east coast. The work will involve front-end engineering design for a new, gas oil separation plant at Abu Ali and facilities at its Khursaniyah plant for handling hydrocarbon condensate.
Martin Adler, the president of SNC Lavalin’s oil & gas business, said: “SNC-Lavalin has worked with Saudi Aramco for nearly 40 years and has maintained an impressive track record of safely and successfully delivering projects. This contract award shows the depth of our commitment to customer relations in Saudi Arabia and the region as a whole.”
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