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RPS Group succumbs to £591mln knock-out punch from Canadian rival

Published 09/08/2022, 09:30
Updated 09/08/2022, 09:40
© Reuters.  RPS Group succumbs to £591mln knock-out punch from Canadian rival

Engineering consultancy RPS Group (LSE:LON:RPS) PLC looks set to succumb to a £591mln knock-out offer from its Canadian rival WSP Group (TSX:WSP).

The deal was pitched at 206p a share – almost double the weighted average price over the last three months.

Unsurprisingly, the stock opened 74% higher but traded just below the offer price. October 2018 was the last RPS shares changed hands at these levels.

WSP is paying a near 15-times last year’s earnings (EBITDA) – a deal that received the board’s backing.

The Canadians currently have the support of 18% of the group’s shareholder base but will require 75% to endorse the takeover if it is to get the green light.

The fact the shares are trading at 203p, marginally below the offer price, suggests there is no competing bidder waiting in the wings.

Read more on Proactive Investors UK

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