Sharechat Logo

OIO still working as Canada's WSP cleared to acquire Opus International

Monday 27th November 2017

Text too small?

Canada's WSP Global Inc has gained Overseas Investment Office approval to acquire locally listed engineering consultancy Opus International Consultants, allowing it to declare the deal unconditional and allaying fears the OIO's work had stalled since the election.

WSP was waiting on regulatory sign-off before declaring its $283.9 million takeover unconditional having crossed the 90 percent threshold needed to mop up hold-out shareholders earlier this month. The Canadian firm applied for OIO approval in mid-August, before the general election, and is one of the first to be cleared under the new Labour-led administration. 

"The approval from the Overseas Investment Office now enables the acquisition process to be completed and the amalgamation of our two companies to begin," Opus chair Keith Watson said in a statement. "Opus’s new ownership will create a significant opportunity for our people and clients, and we look forward to the benefits and strengths the joining of our companies will bring to us and the industry we serve." 

Last week the government said it had begun policy work to further tighten the sale of local assets to foreigners beyond the initial announcement of an effective ban on overseas buyers of existing residential property, raising fears all applications before the OIO were in limbo. 

Other applications involving listed companies before the OIO include Vital Healthcare Property Trust's conditional deal to purchase and redevelop two private hospitals and OG Oil & Gas's partial takeover of energy explorer and producer New Zealand Oil & Gas. 

WSP has received acceptances for 95.2 percent of the shares in Opus, with its offer formally closing today, after which it will exercise its right to buy the remaining stock. The shares rose 0.6 percent to $1.76, still below the $1.92 offer price. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports