22/03/2013 - 11:36

RCR offers $62m for Norfolk Group

22/03/2013 - 11:36

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RCR offers $62m for Norfolk Group

RCR Tomlinson has made a $62 million offer to purchase engineering contractor Norfolk Group.

RCR announced today it had offered to acquire 100 per cent on Norfolk’s shares via scheme of arrangement, subject to due diligence and formal documentation.

RCR has offered 38 cents for each Norfolk share.

Norfolk’s board of directors have thrown their unanimous support behind the proposal, as has major shareholder Maui Capital.

RCR managing director Paul Dalgleish said the proposal offered a compelling liquidity opportunity for Norfolk shareholders.

Norfolk Group has annual revenue of around $1 billion, and would help RCR meet its growth and diversification targets, Dr Dalgleish said.

“The proposed acquisition will also provide RCR with access to infrastructure markets, particularly those requiring significant technical intellectual property,” he said.

“The size and footprint of Norfolk is consistent with RCR’s business and the proposed acquisition would deliver to RCR greater diversification of revenues across our end markets."

Norfolk Group has been seeking a suitor since July last year, but put off the search in November because it was not able to secure a suitable takeover offer.

Its board of directors believe the company is too small to remain as a listed entity with its current market capitalisation.

At close of trade today, RCR shares were down 4 cents, at $2.00, while Norfolk Group’s shares were at 45.5 cents, having been placed in a trading halt last week.

 

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