These guys are ferials. Keeping option to walk away anytime. They are trying to buy Laing O'Rourke on the cheap....$600M-800M. I think others will buy it before them? How do I know bc they tight arses. BRS will be at or above $1.35 by the time they get their sh!t together and pay more.
The contest for the Australian arm of British construction company Laing O’Rourke is shaping up as a shootout between the interested buyers in late April.
Apparently, up to six groups are interested in the business, but at a price far less than the expectations of the parent, which is hoping to achieve proceeds of more than $1 billion.
However, potential bidders are interested in paying more in the range of $600m to $800m, according to sources.
While Laing O’Rourke’s adviser, HSBC, has sent out flyer documents for the sale to potential suitors, it will be handled in a slightly different way to most processes.
Instead of one where the adviser calls for indicative bids, then final bids, potential buyers will be asked to submit their best offers in late April before the company chooses the winning candidate.
However, no date has yet been set for that to happen, despite flyer documents already being out.
So far, the line-up to buy Laing O’Rourke includes Spain’s Ferrovial, which has also been vying for the listed services company Broadspectrum.
Another is said to be Vinci Construction, and, potentially, Acciona out of Spain.
While French builder Bouygues was initially thought to be an interested buyer, it is understood that it is now longer the case.
John Holland, now owned by the China Communications Construction Company, is unlikely to be in the mix, because it will face competition issues, according to sources. Both Bouygues and Ferrovial expressed interest in the sales process for John Holland about two years ago, before it was snapped up by CCCC.
It is understood that Laing O’Rourke had three indicative approaches before Christmas, which triggered a move by the parent company to put the business on the block. Two were thought to be from Ferrovial, which is working closely with UBS, and Bouygues, while a third approach was from a party out of Asia.
BRS Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
