Kentz shareholders say yes to SNC-Lavalin takeover deal
Subject to court approval, the deal is expected to become effective on Aug. 22.
MONTREAL — SNC-Lavalin Group Inc. says its $2.1-billion cash takeover offer for Kentz Corp. Ltd. has received overwhelming support from shareholders of the UK-based engineering and construction company.
The Montreal-based engineering and construction giant says 99.39% of the votes cast were in favour of the deal.
SNC-Lavalin says anti-trust clearances and approvals have been obtained and, subject to court approval, the deal is expected to become effective on Aug. 22.
The acquisition will increase SNC-Lavalin’s presence in the booming global oil and gas industry. Kentz’ clients include major oil companies such as Exxon Mobil, Shell, Chevron, Syncrude and Apache. Kentz has over 15,500 employees in 36 countries
It’s the first big acquisition for SNC-Lavalin under CEO Robert Card, who was hired after the firm disclosed financial irregularities two years ago that led to fraud charges against several former employees, including a former chief executive officer.
SNC-Lavalin has offices in more than 40 countries with 30,000 employees and provides services to clients in a variety of industry sectors, including mining and metallurgy, oil and gas, environment and water, infrastructure and clean power.
© 2014 The Canadian Press