Company News: Cardno & BHP
Cardno came out of a trading halt this week to announce it will acquire Raba Kistner Inc, a Texas based engineering services firm. The acquisition will increase the geographic footprint of its Construction Sciences division. Cardno will pay US$55 million for the company, with US$45.2 million paid upfront and $US12.5 million in the form of performance-linked payments. The acquisition is in line with the company’s strategy to grow through conservative acquisitions.
BHP completed its off-market buyback this week. The final price for the off-market buyback was set at $27.64, a 14% discount to the market price of $32.14. Due to strong demand, the offer was scaled back to approximately 41.3% of tendered amounts.
We participated in the buyback on behalf of low tax rate entities where we deemed it would be beneficial on an after tax basis.
The company also announced a special dividend, which will be paid in January.