Altrad intends to acquire approximately 98 per cent of the issued shares in Valmec by way of a Scheme of Arrangement, which if implemented would see Valmec receive a total cash consideration of $0.413 per share.
This offer implies an equity value for Valmec of approximately $52 million.
The scheme is expected to be voted on at a Valmec shareholders meeting in October this year, with the Valmec board having unanimously recommended in favour of the acquisition.
If successful, Valmec Managing Director Steve Dropulich would retain a shareholding in Valmec of approximately 2 per cent and will continue as Managing Director.
Mr Dropulich controls another 5.3 million shares, or approximately 4 per cent, in Valmec which would be subject to the scheme.
He said the proposition was a testament to the work of the company.
“To be recognised and attract the interest of a global leader such as Altrad is a clear recognition of hard work, dedication and professionalism of our staff and the strong support we have received from our shareholders throughout our journey.”
Altrad Services CEO Asia-Pacific Neil Sadler he looked forward to identifying value-adding opportunities for the combined existing and prospective client bases.
“The acquisition of Valmec will mark another transformational milestone for our Asia-Pacific business and deliver a value-accretive step change in the scale and diversity for our company,” he said.
Valmec said it anticipated further details for shareholders will be released by mid-September.
For more information visit the Valmec website.