Specialist Energy Group says that bid talks with Indian engineer McNally Bharat Engineering Company Ltd.
McNally’s subsidiary MBE Mineral Technologies owns 23.4% of Specialist Energy. MBE did not have any shares in Specialist Energy before September 2010 and its share buying has helped to underpin the Specialist Energy share price. In the past McNally has indicated that the stake was a strategic investment and it may still want to increase it to 29.9%.
Luton-based Hayward Tyler is the core business of Specialist Energy. It supplies fluid filled electric motors and pumps for the power generation and oil and gas markets. One of its main markets is nuclear, where future demand is uncertain, but the main market is North America which is not as negative about nuclear power as some parts of Europe.
The Japanese earthquake and subsequent meltdown at the Fukushima nuclear plant earlier this year are likely to curtail new build orders from the nuclear sector, although this should not hamper Specialist Energy too much because it also supplies the non-nuclear power sector. Tighter nuclear safety standards could lead to more spending on the maintenance of nuclear plants.
At 63p a share, Specialist Energy is valued at £22.4m. Interim figures will be published on 20 September. The order book was worth £22.4m in May.
Download the September 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2011_24.pdf
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