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Sat 9 May 2020 04:40 PM

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UAE-based ASGC acquires 15% stake in Costain engineering firm

ASGC is one of 26 companies within the Al Shafar Group

UAE-based ASGC acquires 15% stake in Costain engineering firm

UAE-based Al Shafar General Contracting Company (ASGC) has come to an agreement to acquire 41.6 million shares – a 15 percent stake – of British engineering firm Costain for $31 million, the company has announced.

The investment comes as Costain raises $124 million from the capital markets in a share issue underwritten by Liberum Capital and Investec Bank.

According to Costain, $99 million is being raised through a firm placing, while $24.8 million through the placement and offer of 166.6 million new shares

ASGC is one of 26 companies within the Al Shafar Group.

Costain plans to use the proceeds from the capital raising for a number of corporate purposes.

“This capital boost will allow us to demonstrate our increased financial capacity to clients, providing a competitive advantage in a sector where clients and suppliers are increasingly scrutinising their partners’ balance sheets,” the spokesman said.

“This will help us to take advantage of business growth opportunities through the investment required in bid costs and innovation and technology, enhancing the execution of the group’s leading edge strategy to grow higher value services with increased margin,” the spokesman added.

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