Oil and Gas News

Altrad to acquire Valmec

McArthur Oil & Gas

Altrad Australia has announced it intends to acquire Valmec following the two companies entering an agreement.

As party of the binding scheme implementation deed (SID) which will see Altrad acquire 98 per cent of the issued shares on Valmec by way of a scheme of arrangement.

However, completion of the scheme remains subject to Valmec shareholders and court approval.

It is expected that the scheme will be voted on at a Valmec shareholders meeting in mid-October 2021, with implementation of the scheme expected in late October.

The Valmec board of directors believes the scheme is an attracted proposal for shareholders because it implies equity value for the company of $52 million; values Valmec shares at an all-time high price; and delivers certainty of value.

Managing director Steve Dropulich will retains a small shareholding in Valmnec of 2 per cent and will continue as managing director following the implementation of the scheme.

Altrad is a global leader in industrial maintenance services, delivering high value-add services to client in multiple sectors, including oil and gas.

“The proposed transaction is a testament to the entire Valmec team and the work that has been undertaken to grow this company,” Dropulich said.

“To be recognised and attract the interest of a global leader such as Altrad, is a clear recognition of the hard work, dedication and professionalism of our staff and the strong support we have received from our shareholders throughout our journey.”

Altrad Services chief executive officer (Asia Pacific Region) Neil Sadler added that the acquisition of Valmec will mark another transformational its Asia-Pacific business.

“Once the scheme is implemented, I look forward to working with my leadership team and the Valmec team to identify value-adding opportunities for our combined existing and prospective client bases.”

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