British engineering group Kentz has rejected takeovers bids from UK oil engineering company Amec Plc and Germany's M+W Group by saying that both firms undervalued the company.
Although Amec offered 565-580 pence per Kentz share on 5 Aug, valuing the deal at £680m ($1.1bn, 797m), Tipperary-based Kentz said the board "unanimously rejected the approach."
Kentz, which specialises in aiding large industrial customers build up oilfields, mines and other factory sites, also confirmed that it had rejected another takeover approach, made by M+W Group in July, citing similar disagreement over the value of the company.
Adding to Amec's Business
Amec said that the takeover of its smaller rival would help boost its businesses "and enhance Amec's position in two of its core markets: oil and gas and mining."
Earlier this year, Amec's chief executive Samir Brikho said the group was considering targeting a wide range of deals, after the company posted record order book of £3.9bn in its interim results.
Kentz, which is listed on the London Stock Exchange, generated revenues worth $1.56bn and posted profit before tax of $104.8m in the previous year.
The company was born in 1919 as local electric contractor based in County Tipperary. It became an international oil services group in the 1970s. Kentz currently has over 14,500 employees across 30 countries.
Kerbet, the investment vehicle of Malaysian businessmen Tan Sri Mohd Razali Abdul Rahman and Hassan Abas, is the leading shareholder of Kentz. Kerbet earlier had 80% stake in Kentz before its IPO in 2008.
The other investors of Kentz include, Legal & General, Standard Life Investments, BlackRock and Schroder Investment Management.