Foster Wheeler Inks Definitive Agreement With AMEC

(RTTNews) - Switzerland-based engineering and construction contractor Foster Wheeler AG (FWLT) Thursday said it has entered into a definitive agreement with engineering and project management company AMEC Plc. (AMEC.L) whereby AMEC would make an offer to acquire all issued and to be issued share capital of the company.

Today's announcement follows the January 13 announcement of a provisional agreement between the parties.

AMEC will offer to exchange for each outstanding share of Foster Wheeler common stock transaction consideration consisting of 0.8998 shares of AMEC stock and $16.00 in cash.

Separately, Foster Wheeler expects to pay a one-time dividend of $0.40 per share prior to, and not conditional on, the closing of the offer.

Based on AMEC's stock price of 10.92 pounds per share on February 12 and an exchange rate of £/$1.658, the proposed transaction would value each Foster Wheeler share at $32.69 and the share capital of Foster Wheeler at around $3.3 billion, taking into account the proposed $0.40 dividend by the company.

The transaction is expected to close in the second half of 2014.