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ShawCor To Acquire Remaining 50% Of Bredero-Shaw
The purchase price has been agreed at $150 million (U.S.), payable on the basis of $75 million ($50 million in cash and a short term note for $25 million) together with an issue from treasury of 7.72 million class A subordinate shares.
Including 50% of Bredero-Shaw's debt, the total cost of the purchase price will be approximately $200 million.
The short term note, due one year after closing, is payable, at Halliburton's option, anytime 90 days after closing. Repayment of the note during the period 90 to 180 days after closing may, at the option of ShawCor, be made by an issue of an additional 2.57 million class A subordinate shares or in cash.
Repayment of the note during the period 181 to 365 days after closing will be in cash.
Completion of the transaction, which is subject to the approval of the Halliburton and ShawCor board of directors, the execution of definitive agreements and the receipt of all necessary regulatory, government and other consents, is currently anticipated to occur prior to the end of the third quarter.
The acquisition will increase ShawCor's revenues on an annual basis by more than 50% and the additional contribution realized through the ownership of 100% of Bredero-Shaw is expected to be accretive to ShawCor's overall results, the company said.
Following completion of this acquisition, ShawCor's business will become even more globally weighted with a strong focus on both North American and international pipeline activity in onshore and marine environments including technologically demanding deepwater markets where the growth potential is particularly attractive.
Upon completion, on a pro-forma sector basis approximately 75% of ShawCor's revenue will be derived from the pipeline sector and the company will be the pre-eminent supplier of corrosion and negative buoyancy coatings, linings and insulation systems to the energy industry worldwide.