Monday 1st May, 2017

Dar Group buys more of WorleyParsons

Money. Photo: Jim Wilson
Photo: Jim Wilson

Shares in engineering firm WorleyParsons have jumped more than 6% in the past week, after Dubai-based Dar Group reportedly bought $175 million more shares, boosting its holding to 19.9% of the business.

Dar bought 13.35% of WorleyParsons in February, after it tried to buy 100% of the Australian business late last year.

Dar has now reportedly increased its share to just below 20%, after the AFR reported this week that the Dubai group was behind a 15.3 million share transfer on Monday morning, with the shares traded at $11.50 each.

The reported $11.50 price was a 4% premium on the $11.05 closing price on Friday, but the share price quickly shot above the sale price, closing at $11.72 on Tuesday this week.

Neither side has made a formal statement this week, but when Dar bought the 13.35% stake earlier this year, it heaped praise on the Australian engineer.

“WorleyParsons [is] the preeminent energy and design consultancy globally,” Dar Group said in a release.

“Dar Group has acquired the stake with a long term strategic perspective and looks forward to being a supportive shareholder.”

The Dubai-based business, which has 18,000 staff in 58 countries, said in February it had no immediate intention of acquiring more of WorleyParsons, despite the 100% bid in November.

The 100% offer at $11.80 per share was rejected by the board, and was not revealed to shareholders at the time.