UGL SHARES SURGE AFTER $524 MILLION CIMIC OFFER
Written on the 10 October 2016 by Chelsey Landford
CONSTRUCTION giant CIMIC has launched a $524 million takeover bid for rival engineering contractor UGL, seizing on the company's falling share price amidst the mining industry slump.
The group has long been the subject of takeover rumours, with media claims suggesting last year that rivals Downer EDI and Transfield Services were considering offers. It took a beating from investors in early June when management warned of potential contract losses worth $200 million from its Ichthys liquefied natural gas plant project.
UGL share prices leapt 48.6 per cent to $3.17 on the offer in midday trade, its highest price since June and its largest one-day jump since listing on the ASX in 1994.
Author: Chelsey Landford