The company offers 52.3p per share, valuing the company at £58.8m, or a 58.5% premium on the closing price of Van Elle shares on April 8. The offer was unanimously agreed by the Van Elle, and will now go to its shareholders. So far, shareholders owning around 45% of its stock have agreed to vote for the deal.
In its offer, Strabag said that Van Elle has a ‘strong history and established market position as a leading ground engineering and geotechnical specialist in the UK.’ Citing a strategy of diversifying across markets, sectors, clients and scale, and Strabag’s current work on several high profile major projects, the offer argues that the deal would provide a highly valued and specialist capability, optimising delivery assurance and value for money for its clients and stakeholders.
The companies would, the offer says, benefits from complementary client relationships and end markets, particularly in the residential, water, energy and transport sectors, create attractive cross-selling opportunities, broaden the combined civil engineering offering around ground engineering works, and generate revenue synergies. This is expected to strengthen the combined presence across regions and strategically important sectors and deepen engagement with both existing and prospective key clients.
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