The recommended cash acquisition, together with the declared Eaga interim dividend, has a value of 120p per Eaga share.
A share alternative, worth a maximum of 40% of the total value of the cash consideration, is being made available to Eaga shareholders, with new Carillion shares valued at 385.2p per share
The acquisition, together with the dividend, values Eaga's issued and to be issued share capital at about 拢306.5m.
Eaga had revenues of 拢762m in the year to 31 May 2010 and made a pre-tax profit of 拢41.5m. However, its share price had slid form a high of 157.8p in March 2010 to below 52p by the end of November.
Carillion has identified the low carbon market as a strategic area of growth. It said that the acquisition of Eaga would 鈥渃reate a scalable platform to build the UK's largest independent energy services provider鈥�.聽
It is also expected to extend Carillion's capability to provide integrated support services solutions for its existing customers.
Carillion believes it can achieve synergies in the enlarged group of 拢9m by the end of 2013.
The deal is subject to approval by Eaga shareholders and the FSA but is expected to complete in April 2011.Carillion chairman Philip Rogerson said: "The acquisition brings together two complementary companies, enhancing Carillion's position as one of the UK's leading support services companies. 聽The acquisition is expected to be immediately earnings enhancing and builds on Carillion's previously announced objectives for growth.鈥�
Eaga chairman Charles Berry said: "The offer received from Carillion has come at an interesting time in Eaga's development, as our markets are changing rapidly.聽 While there are exciting future prospects, we believe these are potentially better accessed as part of a larger group.聽 Carillion offers our unique business the opportunity to grow in a strong home, it offers our partners the prospect of delivering that growth potential, while our shareholders receive a significant cash premium and a partial share alternative which allows them to participate in the enlarged group's future potential."
Got a story? Email news@theconstructionindex.co.uk
