WorleyParsons buys S African firm for $100m
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Nicholas Grove is a Morningstar journalist.
WorleyParsons (WOR) on Wednesday said it will acquire TWP Holdings (Proprietary) Limited (TWP), a subsidiary of the South Africa-listed Basil Read Holdings Limited, for $100 million.
TWP is a major provider of engineering design, procurement, construction management and asset services, largely within the mining sector, WorleyParsons said in a statement.
It currently employs approximately 1100 personnel, predominantly in South Africa, but also in greater Africa, Latin America and Australia, it said.
Under the deal, WorleyParsons said it will effectively acquire only the TWP Projects business, as a number of subsidiaries that operate in different markets will remain with Basil Read.
Completion is expected by March 2013 but remains subject to a vote by Basil Read shareholders, and South African regulatory approvals.
The Basil Read board has recommended shareholders vote in favour of the deal in the absence of a superior offer, WorleyParsons said.
"The acquisition of the TWP business will equip WorleyParsons to provide its clients with access to world-class specialised underground mine planning and engineering capabilities, mineral processing and project management solutions, while leveraging TWP's skills and expertise globally," WorleyParsons CEO Andrew Wood said.
WorleyParsons also announced on Wednesday it had been awarded a US$90-million contract extension by BP Iraq and its partners to continue providing services to boost production from the Rumaila oilfield in Southern Iraq.
In November 2009, BP and its partners entered a 20-year technical service contract with the South Oil Company of Iraq. Under the deal, the BP-led consortium is required to nearly triple output from the field to 2.85 million barrels of oil per day over the next six years.
Upon completion of this work, Rumaila will become the world's second-largest producing oil field, WorleyParsons explained.