MENU

Worleyparsons Limited (ASX:WOR) shares dive on return to trade

Engineering, procurement and construction consultancy firm, Worleyparsons Limited (ASX: WOR) shares are down almost 11% at the time of writing to $15.90 after a return to trade following a trading halt issued on October 22.

Worleyparsons announced the acquisition of Jacobs Engineering Group Inc for $4.6 billion on October 22 as the company went into a trading halt on the launch of an entitlement offer to raise $2.9 billion in capital to fund the takeover.

The company has successfully completed the institutional entitlement offer, raising $1.8 billion at $15.56 per share with the fully-underwritten retail component of the entitlement offer expected to raise the remaining $1.1 billion.

But investors are sour on the arrangement if today’s share price dive is anything to go by, despite the Jacobs acquisition looking fairly compelling – allowing Worleyparsons to increase its foothold in the engineering sector with a promise of “earnings stability”.

Other engineering players on watch include Emeco Holdings Limited (ASX: EHL) and NRW Holdings Limited (ASX: NWH) with Emeco shares down 4.4% today to 32c per share after a period of inclines and NWR shares also slightly in the red.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.