Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

UPDATE 1-WorleyParsons warns regulator about top shareholder's stake raise move

Published 16/10/2019, 12:12 pm
© Reuters.  UPDATE 1-WorleyParsons warns regulator about top shareholder's stake raise move
AXJO
-
WOR
-

(Adds details on media report, WorleyParsons quote)

Oct 16 (Reuters) - Australian industrial engineering company WorleyParsons Ltd WOR.AX said on Wednesday it has informed the country's foreign investments regulator of "creeping acquisitions" by its biggest shareholder, Dubai-based Dar Group.

WorleyParsons had rejected a $2.2 billion full takeover bid from Dar Group in 2016, and Dar now owns about 20.2% of the Australian company, according to Refinitiv data.

WorleyParsons' announcement came in response to a report https://www.afr.com/street-talk/worley-makes-national-interest-pitch-as-dar-group-looms-20191015-p530ph on Tuesday by the Australian Financial Review that Worley had told the Foreign Investment Review Board (FIRB) Dar was seeking to take control of the company and that it believed the move would be against Australia's national interest.

The AFR report added that Worley has requested the regulator to reject an application by Dar Group in which it has sought the regulator's permission to increase its stake.

Dar Group did not immediately respond to a Reuters request for comment.

WorleyParsons said in a statement it went to the FIRB after Dar bought some of its shares and requested representation on the WorleyParsons board, which the Australian company did not believe was in shareholders' best interests.

"Worley... is entrusted with sensitive information and performs a vital role for customers and governments in Australia, the USA and globally on projects and infrastructure that are of a critical nature," it said.

WorleyParsons shares were up as much as 3.7% on Wednesday morning, and later shed some of the gains to be up 2.6%. The broad Australian stock market .AXJO was up 0.8%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.