Weir Group flags delay to sale of oil and gas division
Weir Group updated the market on the proposed sale of its oil and gas division to Caterpillar on Tuesday, reporting that it was now expected to close in the first quarter of 2021.
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Industrial Engineering
13,392.61
17:09 25/04/24
Weir Group
1,967.00p
16:40 25/04/24
The FTSE 250 company had previously announced that completion of the transaction by the end of the year was dependent on the receipt of all regulatory clearances.
It said on Tuesday that, while the majority of those clearances had been received, including those from the United States, a “small number” remained outstanding, with the timing of some standard processes being delayed by Covid-19 restrictions.
“An agreement to sell the oil and gas division to Caterpillar for an enterprise value of $405m, subject to customary working capital and net-debt adjustments, was announced on 5 October,” the board explained in its statement.
“The proposed sale was approved by shareholders in a general meeting on 23 November, with 99.97% of the shares voted being in favour of the transaction.
“Weir Oil & Gas has been reported under discontinued operations since the sale agreement was announced.”
At 0812 GMT, shares in Weir Group were down 0.57% at 1,931p.