Outsourcing specialist, Mouchel, has rejected a revised all-share offer from Costain that valued the company at £235 million, Financial Times reports. The offer included 0.5947 new Costain shares for each share in Mouchel, whose shareholders would receive about 51.7% of the enlarged issued share capital of Costain.
Based on that price, the Costain offer would equate to 135 pence a Mouchel share, valuing its equity at £152 million. Mouchel had net debt of £83 million at the end of July, resulting in an enterprise value for the company of £235 million. The construction and engineering group is being advised by Investec, while Mouchel by RBS Hoare Govett.
Click here for the story from Financial Times.
Click here for additional coverage from The Wall Street Journal.