UPDATE 11.20am: Shares in Forge Group have soared more than 20 per cent as WA contractors join parties having a look at its books as the engineering company seeks a more lasting fix for huge project losses.
It is understood that Monadelphous Group, NRW Holdings and Southern Cross Electrical Engineering have made use of a data room set up for potential investors.
Some of the players are thought to be uninterested in investing in Forge but looking for information about its contracts in case they have to be re-tendered.
The process is being overseen by broking firm Euroz Securities, which Forge last week said it had appointed as a corporate adviser to formally manage approaches by third parties.
A number of private equity players have also been running the ruler over Forge.
Offers from investors could range from taking a cornerstone stake in Forge to a full takeover.
The activity follows ANZ Bank late last year rescuing the engineering group from potential insolvency over looming losses on two power station projects, now forecast to top $150 million.
ANZ sought advice from insolvency specialist KordaMentha when it struck a debt deal with Forge.
Monadelphous is WA's biggest listed contractor, with a market capitalisation of $1.4 billion. It provides engineering and construction services to the mining and oil and gas sectors.
SCEE specialises in electrical and instrumentation work for resources clients. The company is 40 per cent owned by founder Frank Tomasi and valued at $116 million.
NRW is a civil and mining contractor with a market cap of about $370 million.
Forge was up 14.5 cents, or 21 per cent, to 82.5 cents at 11.16am. It has traded as high as 86 cents today.
The share price has been on a rollercoaster ride and suspended from sharemarket trade three times since November, trading between 28.5 cents and $1.96.
FGE Price at posting:
84.0¢ Sentiment: Hold Disclosure: Held
