Canadians make Opus takeover bid

The company that helped design London’s Shard building and New York’s Freedom Tower is offering a big premium to buy a Kiwi infrastructure consulting firm.

WSP Global, which is listed on the Toronto Stock Exchange, is offering Opus International shareholders $1.78 a share in cash, a near-87 per cent premium to its 99c share price on Friday.

Shares in Wellington-based Opus shot up 62c to $1.60 after the takeover news.

WSP has also bought a controlling 61.2 per cent stake in Opus from Malaysia’s UEM Edgenta Berhad.

Mark Lister, head of private wealth research with Craigs Investment Partners, said he and most brokers had not covered Opus since it fell out of the NZX 50 Index.

But in general, sentiment had been against Opus after several poor performances and disappointing offshore acquisitions, despite the booming domestic construction sector.

The bid would create a ‘‘lot of happy, long-suffering shareholders’’, Lister said.

Opus floated in 2009 at $1.65c a share, and its shares had been above $2 as recently as 2014 so the offer would help long-term investors recoup their losses.

WSP was in an allied industry and Lister said it did not appear to be a hostile offer. But he still advised shareholders to wait for more information.

WSP president Alexandre L’Heureux said his company already had a solid presence in Australia and Opus fitted its strategy very well. ‘‘We’re a global engineering firm but we have a very small presence in New Zealand … so to be in a position to merge with a firm like Opus was really attractive.’’

New Zealand was also about to embark on a large schedule of infrastructure work, he noted.

WSP provides engineering designs and services mostly in the property, civil engineering, energy and environmental sectors.

Opus has 40 offices and 1800 staff in New Zealand, and has been involved in many projects including Christchurch’s Justice Precinct.