Following on from the recent announcement that WorleyParsons was to purchase North Sea oil & gas provider AFW UK, the company has announced that it has raised $253 million from its shareholders (at a price of $13 per share) via institutional entitlement offer to help fund the purchase.
WorleyParsons will enter its next stage of funding via the retail market to raise the required $69 million to complete its $322 million, pro-rata takeover next week.
The strong round of initial funding indicates that the company should reach this funding target will little difficulty; retail funding is due to close on October 25, at which point the final sum will be announced.
“We are pleased with the extremely strong support for WorleyParsons’ acquisition of AFW UK demonstrated by the response shown by our institutional shareholders,” said WorleyParsons chief executive officer Andrew Wood.
“We believe this response is an endorsement of the compelling strategic rational of the transaction.”