Kentz Has No Plan to Sell Itself as Backlog Reaches Record
Kentz Corp. (KENZ), the oil engineering company targeted by two prospective bidders in recent months, said it’s not looking to sell itself as orders rose to a record.
Both takeover approaches were “unanimously rejected,” Chief Executive Officer Christian Brown said today in a telephone interview. “We’re not looking at selling Kentz. We’re focused on growing ourselves as a standalone entity.”
The stock rose 24 percent on Aug. 19, valuing Kentz at 670 million pounds ($1 billion) after the board snubbed a proposed offer from Amec Plc (AMEC) of as much as 580 pence a share. M+W Group also said it filed an indicative bid in July that was rejected. Brown today declined to comment on a Sunday Times report that unidentified investors would be open to a bid at 650 pence.
Kentz said its order backlog has grown 12 percent to $2.8 billion since June 2012. The Tipperary, Ireland-based company submitted a record $4.5 billion of bids in the second quarter, it said in half-yearly results published today in London.
Kentz raised its interim dividend 20 percent to 6.6 cents a share as earnings per share gained 23 percent to 33.25 cents. The stock slipped 0.4 percent to 565 pence in London.
“We’ve delivered what we said operationally and we have a great platform to grow from,” Brown said.
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