Due diligence and arranging finance for聽the deal are expected to take a few more weeks.
In a statement to the stock exchange this morning (24 February), the consulting engineer and support services group said: 鈥淭he board is pleased to confirm that it is now in advanced discussions with one potential offeror and has signed a co-operation agreement with that preferred trade purchaser in relation to a potential offer being made for the company.鈥�
Last month Mouchel said that it had received several approaches from companies wanting to take it over. The only firm offer to be made public was from Costain, which has made three approaches, the most recent valuing Mouchel at 拢175m. At that time, Mouchel insisted it had better prospects on its own. Now, however, it has been persuaded that shareholders would get a better return by merging with another company.
Mouchel鈥檚 statement added: 鈥淎lthough the board of Mouchel considers that the company has a strong future as an independent business, it believes that the strategic logic of a combination of Mouchel and the Preferred Possible Offeror would provide the best option to deliver value to shareholders.
鈥淭he making of any offer by the Preferred Possible Offeror remains subject to a number of pre-conditions, including the satisfactory completion of mutual confirmatory due diligence and the arrangement of financing which is likely to take a number of weeks.聽Save in respect of the arrangement of financing, the Company and the Preferred Possible Offeror have reserved their respective rights to waive, in whole or in part, any or all such pre-conditions.鈥�
Costain subsequently issued a statement saying that it is not the party that is in advanced discussions with Mouchel. Names in the rumour mill include Balfour Beatty, Interserve, Mitie, Serco,Carillion, Capita and US firm CH2M Hill. Mouchel has ties with Capita聽dating back to the 1990s when it recruited its leadership from there. Mouchel is聽currently managing the construction of Darwen Academy in Blackburn, the pet project of Capita's聽extremely wealthy聽founder Rod Aldridge.
Got a story? Email news@theconstructionindex.co.uk
