CIMIC announces takeover bid for UGL

Company News

by Jessica Ellerm

CIMIC Group Limited (ASX:CIM) has launched a takeover bid for UGL, after purchasing a 13.84 percent stake in the company early Monday morning.

CIMIC is offering $3.15 per share, a 47 percent premium to Friday’s closing price of $2.14.

Depending on the degree of control secured during the takeover, CIMIC is seeking to delist the company.

The company believes its core competencies are complementary to CIMICs existing operations, and that it can drive operational efficiencies through the acquisition.

CIMIC Group Limited reported a net profit of $244.6 million at 30 June 2016.

Jessica Ellerm

Finance News Network
Jessica joined FNN in April 2016 and presents the Australian Share Market Outlook, and reports on the morning's leading business stories. Alongside FNN Jessica is a fintech industry commentator, writing for her own blog and a number of international online publications.