News blog
Chieftain Group
- BY: Andrew Hore |
- POSTED: 30/09/2008 |
Engineering services provider Chieftain Group is being acquired by fellow Aim-quoted company Redhall.
Redhall is offering 209.2p a share in cash, which values Chieftain at £18.6m. Chieftain shareholders will receive the interim dividend of 3.3p a share on 3 October. Redhall is raising £20m in a placing at 245p a share in order to finance the bid.
Chieftain’s core management wants to retire so it put the business up for sale.
Redhall has already received acceptances of 34.4% of Chieftain’s share capital.
The purchase will strengthen Redhall’s position in the oil and gas sector and expand its services in the nuclear marine market. It will also add to Redhall‘s fabrication and manufacturing facilities. Chieftain is strong in the North East and it will add to Redhall‘s geographical spread of activities.
The purchase should be earnings enhancing in 2009. There should be cost savings of £500,000 a year.
The combined order book is worth £140m.
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