Wärtsilä confirms Hamworthy bid talks

20 Nov 2011
Wartsila HQ in Helsinki - could Hamworthy be based here too?

Wartsila HQ in Helsinki - could Hamworthy be based here too?

Following reports in the UK press last week from Hamworthy that it was in advanced talks with Finland’s Wärtsilä Corporation regarding a takeover, Wärtsilä has issued a statement which confirms the news.

Following the breaking news, Hamworthy shares rose by 138p to 813p, while Wärtsilä has said that its offer price is 825p per share.

The Wärtsilä statement reads: “Wärtsilä Corporation (“Wärtsilä”) notes the recent announcement by Hamworthy plc (“Hamworthy”). Wärtsilä confirms that it is in advanced discussions with Hamworthy regarding a 825 pence per ordinary share cash offer. The potential offer is likely to assume that no further dividend will be paid but, if a dividend is paid, Wärtsilä’s offer will be reduced by the amount of that dividend.

“The Board of Wärtsilä believes that the combination would create an exciting platform in the offshore, marine gas and environmental solutions markets creating long-term growth to the benefit of shareholders, customers, and employees alike.

“Wärtsilä has strategically developed its Ship Power division in recent years beyond the traditional engine technology to encompass ancillary equipment and systems to be able to provide customers with more value added marine solutions. Hamworthy would extend that strategy by offering excellent technology in strong market positions, on which Wärtsilä could leverage its international sales and service network. Wärtsilä believes that the combined resource and competence base would improve the potential in the Offshore markets, help to capture a bigger share of the growing marine gas application market as well as create a stronger position within the rapidly evolving environmental solutions markets. The combination of Wärtsilä and Hamworthy would deliver benefits to both businesses’ current and future customers and stakeholders.”

The group adds that the announcement does not amount to a firm intention to make an offer and beyond confirming that it is in discussions with Hamworthy, it is not certain that the offer will actually be made.

The City Code on Takeovers and Mergers says that Wärtsilä must, by no later than 5.00pm (UK time) on 15 December 2011, either announce a firm intention to make an offer for Hamworthy or announce that it does not intend to make an offer. This deadline can only be extended with the consent of the Takeover Panel in the UK.

Wärtsilä says that it will make a further announcement in due course.

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