SNC-Lavalin Group buys Kentz Corporation.
On 23 June, SNC-Lavalin Group Inc. reached an agreement with Kentz Corporation Limited, approved by the boards of directors of both companies, on the terms of a cash acquisition by which the entire ordinary share capital of Kentz – issued and to be issued – will be acquired by SNC-Lavalin. Kentz is a global oil & gas services company, with 14,500 employees operating in 36 countries who provide engineering, construction and technical support services to clients in the oil & gas sector. The full announcement was issued earlier publicly and may be viewed on SNC-Lavalin’s website.
The proposed acquisition of Kentz is fully aligned with SNC-Lavalin’s strategy of becoming a global Tier-1 engineering and construction (E&C) services firm. The addition of Kentz’s capabilities will make SNC-Lavalin a leading global E&C player in the oil & gas sector, with a greater presence in key growth regions, including the Middle East, North America and Asia Pacific, with a significant presence in Australia. The acquisition also meets the strategic priority of balancing the Company’s risk profile by significantly raising the percentage of revenues it derives from services. This has been supported by discussions between both parties and a robust due diligence process.
“We look forward to adding Kentz to our group and significantly strengthening our capabilities in the oil & gas sector,” said Robert G. Card, President and CEO, SNC-Lavalin Group Inc. “We are excited by the prospect of merging the excellent capabilities of our two oil & gas teams under the leadership of Christian Brown, Kentz’s CEO, which will create a world-class team inside of SNC-Lavalin to better serve our combined clients worldwide. This proposed acquisition and the agreement to sell AltaLink are important milestones in our stated strategy for growth. Together, they give us confidence to increase our focus on the disposition of other mature assets. ” he added.
“On behalf of our Board I am pleased to announce SNC-Lavalin’s recommended cash offer to our shareholders, which has received unanimous support from our Board members. We feel that the Offer recognizes the value of our future prospects, world-class client base, and our excellent people; the ultimate assets of our business. It also offers certainty, in cash, to Kentz Shareholders today,” said Christian Brown, CEO, Kentz. “Our track record in providing complex engineering and construction solutions to the energy sector globally, has evolved considerably from our first international projects in the 1970s, and many of the people instrumental to our growth remain with us today. We have a bright future and I believe that SNC-Lavalin’s technical abilities and scale can support our continued success and bring further benefits to our employees, clients, and partners. I would like to extend my personal gratitude to all of the people that make Kentz what it is and look forward to continuing our success together.”
Find more information on the takeover here.
Puissant Industries buys additional proved oil and gas reserves.
Puissant Industries, Inc. (OTCBB:PSSS), an independent energy company currently focused on the natural gas and liquids rich portion of the Devonian shale play in Eastern Kentucky, announced on June 26 that its acquisition of additional proven natural gas and oil reserves reports 1.180 billion cubic feet (Bcf) of natural gas and .111 million barrels of oil, representing a total increase of .3081 million barrels of oil equivalent (BOE) (1Bbl — 6 Mcf basis), based on an independent engineering report as of March 1, 2014, The Company’s BOE at March 1, 2014 represents a 9.6% increase from the December 31, 2013 engineering report. The NPV @ 10% increased from $29.227 million at December 31, 2013 to $38.052 million, which represents a 30.2% increase
Mark Holbrook, the Company’s Chief Executive Officer commented that: “We are pleased with our additional provided reserves. We will continue our strategy of obtaining additional reserves through acquisitions and further supporting our expansion by investing our oil and gas production into drilling activities, knew wells and facilities…in so doing, we will grow both organically and through acquisitions.”
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