WorleyParsons is pleased to announce an agreement to acquire 100% of the share capital of TWP Holdings (Proprietary) Limited (“TWP”), for cash consideration of R900 million (approximately A$100 million).
TWP is a wholly-owned subsidiary of Basil Read Holdings Limited (“Basil Read”), a listed South African company. TWP is a major provider of engineering design, procurement, construction management and asset services largely within the mining sector. It currently employs approximately 1,100 personnel, predominantly in South Africa, but also in greater Africa, Latin America and Australia. WorleyParsons will effectively acquire only the TWP Projects business as a number of subsidiaries which operate in different markets will remain with Basil Read.
The transaction has been approved by the boards of both WorleyParsons and Basil Read. Completion is expected by March 2013, but remains subject to a vote by Basil Read shareholders and South African regulatory approvals, including approval by the relevant competition authorities. The Basil Read Board has recommended that its shareholders vote in favour of the Proposed Transaction in the absence of a superior offer.
Once the relevant shareholder and regulatory approvals have been achieved, the company plans to integrate TWP into the existing WorleyParsons South African business.
WorleyParsons’ CEO Andrew Wood said: “The acquisition of the TWP business will equip WorleyParsons to provide its clients with access to world class specialised underground mine planning and engineering capabilities, mineral processing and project management solutions, while leveraging TWP’s skills and expertise globally. We are excited by the possibilities the combination brings to both companies and we will welcome the TWP people to the WorleyParsons global family.”
TWP Holdings CEO, Digby Glover, states: “For some time, TWP management has identified the need to become a global player. This is to leverage the numerous large opportunities in the mining and metals project area. Mining projects are becoming increasingly complex; they are situated in diverse international locations and are often in difficult remote areas. Only companies with sufficient geographic presence, capability and scale will be able to successfully compete for this work. TWP joining WorleyParsons elevates the TWP offering to enable us to deliver a broader range of projects. The acquisition will certainly strengthen the group’s position to deliver projects in the mining, metals and chemicals market.”