03/01/2008 - 16:19

Clough sells equity stake in Shedden for $40m

03/01/2008 - 16:19

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Engineering and construction company Clough Ltd has reached agreement with Uhde to sell its equity stake in engineering firm Shedden Uhde for $40m.

Clough sells equity stake in Shedden for $40m

Engineering and construction company Clough Ltd has reached agreement with Uhde to sell its equity stake in engineering firm Shedden Uhde for $40m.

Clough and Shedden Uhde will continue to cooperate following the equity sale due to an engineering services agreement (ESA).

Clough CEO John Smith said it had enjoyed a very constructive relationship, both with the management of Shedden Uhde and with the directors of Uhde GmbH, over the past five years.

Uhde consists of the lead company Shedden Uhde (Australia) Pty Ltd and its regional affiliate Shedden Uhde (Thailand.) Ltd.

"However, strategically Uhde is primarily focussed on engineering for the downstream oil and gas industry, whilst Clough is looking to provide a full EPC service to the upstream sector. Shedden Uhde also provides engineering services to petrochemical and chemical industries, which are non-core to Clough's business."

"The transaction is expected to generate an additional profit of around $20m."

Shedden Uhde Australia employs over 300 personnel, covering engineering, project management, project controls, procurement, finance and accounting, administration, marketing, and general management in its head office in West Melbourne and branch offices in Brisbane and Perth.

Clough said the ESA will provide it with continued access to Shedden Uhde's engineering expertise and resources in Australia and Thailand with the intent to work together where opportunities add value to both companies.

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