CBI Shareholders Favor Shaw Buyout - Analyst Blog
December 20 2012 - 9:05AM
Zacks
Chicago Bridge & Iron Co. N.V. (CBI)
announced that its shareholders have approved the proposed
acquisition of The Shaw Group (SHAW). In a special
meeting, over 90% of the company’s shareholders voted in favor of
the acquisition, which is expected to complete in the first quarter
of 2013. However, the approval from the shareholders of The Shaw
Group is still pending.
In order to complete an acquisition, a minimum of 75% vote is
required in favor of the proposal to be carried out. The Shaw Group
is expected to schedule a shareholders’ meeting on December 21,
2012. Once the acquisition is completed, all the shareholders of
Shaw will receive $41.00 in cash and $5.00 in CB&I equity for
every stock of The Shaw Group held.
The Shaw Group primarily serves sectors like energy, chemicals,
power, environmental, infrastructure and emergency response
industries.
Earlier, Chicago Bridge signed an agreement to acquire Shaw
Group for $46.00 per share in cash and stock to form one of the
largest energy construction and engineering contracting firms
globally with a backlog of more than $28 billion. Chicago Bridge
plans to finance the acquisition by cash and by debt of around $1.9
billion
Post acquisition, CB&I will become fully diversified across
the entire energy sector, including power generation, LNG, refining
and gas processing. This acquisition will expand its portfolio of
engineering and construction projects and is also expected to boost
its nuclear building services. This would add significant business
in utility plants, and operations in environment, infrastructure
and manufacturing. Besides the broadening of addressable markets,
this acquisition will also add scope to its existing operating
capabilities.
Chicago Bridge & Iron Company N.V. provides conceptual
design, technology, engineering, procurement, fabrication,
construction, and commissioning services to energy and natural
resource industries worldwide. Chicago Bridge, which competes with
Fluor Corporation (FLR), Jacobs
Engineering Group Inc. (JEC) and URS
Corporation (URS), currently carries a short-term
Zacks #3 Rank, which implies a Hold rating on the stock.
CHICAGO BRIDGE (CBI): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
SHAW GROUP INC (SHAW): Free Stock Analysis Report
URS CORP (URS): Free Stock Analysis Report
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