Why the Watpac share price is up 25% in 3 months

The Watpac Limited (ASX: WTP) share price is up 25% since early October 2018 to see the shares hit a record high of 93 cents today on a market cap around $153 million.

The reason for the Watpac share price rise is because BESIX Group SA is effectively taking over the company after acquiring a 91.8% stake off market. In effect BESIX will now acquire the rest of the shares it does not own in Watpac at 92 cents per share to complete the takeover.

Watpac and BESIX have worked as partners in different ways since 2013 and the combined group will have more expertise to compete for civil contracting engineering work.

Watpac is an engineering and construction business engaged as a civil contractor across all the main states of Australia. It has over 700 employees and in FY 2018 took in more than $1.1 billion in revenues for an underlying profit of $20.6 million.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!