The UK company instrumental in the completion of the Channel Tunnel rail link, Kier Group Plc, has entered into an agreement to purchase May Gurney Integrated Services Plc. The price for the sale amounted to GBP221 million or US$337 million in both cash and shares.
In exchange for May Gurney shares, owners would be receiving 50 pence and 0.2095 of a Kier share according to a statement issued by Kier. The offer includes a 71% premium than the closing shae price last March 25. March 25 is the day before a merger proposal was submitted by the Costain Group Plc for Kier. The Kier group bid is higher by 35% compared to the bid from Costain.
The Bedfordshire, England based Kier has landed nearly GBP400 million in new contracts and is expanding through these government and private enterprise contracts. The merger with May Gurney would result in pretax savings worth GBP 20 million commencing on June 2016.
This acquisition would also improve the services division of Kier to make it 'a leading provider of services to the local authority and regulated utility sectors.'
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