MTQ sells RCR stock

Tuesday, 2 October, 2007 - 22:00

SINGAPORE-BASED MTQ Corporation has sold its 16.5 per cent stake in engineering company RCR Tomlinson Ltd for $45 million. Stockbroking firm Hartleys placed the 18.9 million shares with a range of institutional investors at a price of $2.40 per share, representing a big profit for MTQ. The sale brings to an end an awkward relationship, which included MTQ making an unsuccessful takeover offer and opposing RCR’s capital raising plans. RCR has achieved raid growth in recent years, helped by a spate of acquisitions, with net profit increasing to $17.6 million last year. However, earnings per share actually fell because of the large volume of share issues used to pay for the acquisitions.

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