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BRIEF-WorleyParsons To Acquire Jacobs Engineering’s Energy, Chemicals & Resources Division

Published 22/10/2018, 11:38 am
© Reuters.  BRIEF-WorleyParsons To Acquire Jacobs Engineering’s Energy, Chemicals & Resources Division
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Oct 22 (Reuters) - WorleyParsons Ltd WOR.AX :

* ACQUISITION OF JACOBS' ECR DIVISION FOR AN ENTERPRISE VALUE OF US$3.3 BILLION

* DEAL FUNDED VIA A$2.9 BILLION ENTITLEMENT OFFER, A$985 MILLION STOCK ISSUED TO JACOBS AND NEW DEBT

* TRANSACTION IS EXPECTED TO COMPLETE IN FIRST HALF OF 2019

* EXPECTS RUN RATE COST SYNERGIES OF ABOUT A$130 MLN P.A., WHICH ARE EXPECTED TO BE ACHIEVED WITHIN TWO YEARS

* STOCK ISSUANCE TO JACOBS WILL BE AT A PRICE OF A$16.92 PER SHARE, WHICH IS EQUAL TO THEORETICAL EX RIGHTS PRICE

* ONE OFF COST SYNERGY IMPLEMENTATION COSTS ARE ESTIMATED TO BE ABOUT A$160 MLN

* DEAL EXPECTED TO DELIVER ABOUT 20% EPS ACCRETION ON AN FY18 PRO FORMA

* TO INCREASE INDIAN GLOBAL INTEGRATED DELIVERY CAPACITY BY ABOUT 3,000 STAFF

* FY2019 RESULTS WILL BE IMPACTED BY JACOBS ECR TRANSACTION, INCLUDING HOLDING EQUITY PROCEEDS UNTIL CLOSING

* WE EXPECT THIS YEAR'S INTERIM DIVIDEND PER SHARE TO BE NOT LESS THAN LAST YEAR'S INTERIM DIVIDEND

* DAR GROUP HAS COMMITTED TO TAKE UP ABOUT A$170 MILLION OF ITS ENTITLEMENTS THROUGH INSTITUTIONAL ENTITLEMENT OFFER

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