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.

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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.

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