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WYG soars as it agrees to be taken over by Tetra Tech for £43mln

WYG said becoming part of the Tetra Tech group will provide benefits of scale and access to expertise across "highly complementary geographies and client relationships"
The deal is expected to be completed in July

WYG PLC (LON:WYG) shares soared higher on Monday as the project management and consultancy group agreed to be taken over by US rival Tetra Tech Inc for £43.4mln.

WYG shareholders will receive 55p per share, representing a 244% premium to Friday’s closing price. In afternoon trading, WYG shares were up 234% to 53.50p, indicating that the market is not expecting an counter-bid.

The AIM-listed company said the deal will create a premier international consulting, engineering and programme management firm and it leave it well-positioned to provide a “strong platform to drive long-term growth”.

READ: WYG says bank waives its covenant tests, constructive discussions in relation to facilities continue

“Becoming part of the Tetra Tech group enables benefits of scale and access to expertise across highly complementary geographies and client relationships, and brings operational infrastructure and financial strength to support WYG's long term growth ambitions,” said Jeremy Beeton, non-executive chairman of WYG.

“We provide Tetra Tech with a strong platform for investing in growth in the UK and Europe.  We believe the combination of our two companies will provide greater opportunities for our people and clients, as well as offering certainty of immediate value to our shareholders at a considerable premium to the prevailing share price."

Tetra Tech has received irrevocable undertakings and letters of intent to accept the offer from shareholders accounting for 72.5% of WYG shares in issue. The deal is expected to be completed in July.

Tetra Tech chairman and chief executive, Dan Batrack, said: "WYG advances our strategy to add firms that support our position as the premier global high-end consulting, engineering, and program management firm."

 He added; “WYG's expertise in infrastructure and programme management, as well as water and environmental services, enables us to deliver innovative solutions to support the UK's infrastructure needs. Together, we will be able to provide an expanded scope of services to our customers and offer our combined staff even greater professional opportunities."

 -- Adds share price --

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WYG PLC Timeline

February 26 2019

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February 13 2019
WYG manages civil projects across the public and private sectors
June 12 2019
The firm reported an underlying pre-tax profit for the year ended 31 March of £27.2mln, 24% higher than the year before, while revenues climbed 13% to £438.9mln
April 05 2019
In early April, the company said it would see its shares delisted from Nasdaq First North and said it intends to apply for a future listing at another suitable venue before the end of 2019

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