WorleyParsons warns regulator about Dubai shareholder’s stake raise

Pedestrians are reflected in a window in front of a board displaying stock prices at the Australian Securities Exchange. (File/Reuters)
Updated 16 October 2019

WorleyParsons warns regulator about Dubai shareholder’s stake raise

  • WorleyParsons generated revenues of about $4.75 billion last year

BENGALURU: Australian industrial engineering company WorleyParsons said it has informed the country’s foreign investments regulator of “creeping acquisitions” by its biggest shareholder, Dubai-based Dar Group.

WorleyParsons had rejected a $2.2 billion full takeover bid from Dar Group in 2016, and Dar now owns about 20.2 percent of the Australian company, according to Refinitiv data.

WorleyParsons’ announcement came in response to a report on Tuesday by the Australian Financial Review that Worley had told the Foreign Investment Review Board (FIRB) Dar was seeking to take control of the company and it believed the move would be against Australia’s national interest.

FASTFACT

4.75bn

WorleyParsons generated revenues of about $4.75 billion last year.

The AFR report added that Worley has requested the regulator to reject an application by Dar Group in which it has sought the regulator’s permission to increase its stake.

WorleyParsons said in a statement it went to the FIRB after Dar bought some of its shares and requested representation on the WorleyParsons board. 

“Worley ... is entrusted with sensitive information and performs a vital role for customers and governments in Australia, the USA and globally on projects and infrastructure that are of a critical nature,” it said.


Oil retreats in face of renewed coronavirus uncertainty

Updated 22 February 2020

Oil retreats in face of renewed coronavirus uncertainty

  • G20 finance leaders to meet in Saudi Arabia at the weekend to discuss risks to the global economy
  • OPEC+ has been withholding supply to support prices and many analysts expect an extension or deepening of the curbs

LONDON: Oil prices fell on Friday as weak Asian data and a rise in new coronavirus cases fuelled uncertainty about the economic outlook while leading crude producers appeared to be in no rush to curb output.

Brent crude was down $1.56, or 2.6 percent, at $57.75 in afternoon trade, while U.S. crude dropped $1.25, or 2.3 percent, to $52.63.

"With Brent failing to breach the $60 level on Thursday despite better than expected U.S. oil inventory data, rising market uncertainty is dragging down oil prices on Friday," said UBS analyst Giovanni Staunovo.

"Market participants who benefited from the price rise in recent days might prefer not to go into the weekend with a long position."

 

China reports rise in coronavirus cases.

Japan factory activity shrinks at fastest pace since 2012.

Russia says early OPEC+ meeting no longer makes sense.

Finance leaders from the Group of 20 major economies meet in Saudi Arabia at the weekend to discuss risks to the global economy after new Asian economic and health data kept investors on guard.

Beijing reported an uptick in coronavirus cases on Friday and South Korea reported 100 new cases, doubling its infections. In Japan, meanwhile, more than 80 people have tested positive for the virus.

Factory activity in Japan registered its steepest contraction in seven years in February, hurt by fallout from the outbreak. 

"We still believe that the market is likely to trade lower from current levels, given the scale of the surplus over the first half of this year, and the need for the market to send a signal to OPEC+ that they must take further action at their meeting in early March," said ING analyst Warren Patterson.

Russian Energy Minister Alexander Novak said on Thursday that global oil producers understood it would no longer make sense for the Organization of the Petroleum Exporting Countries and its allies to meet before the planned gathering.

The group, known as OPEC+, has been withholding supply to support prices and many analysts expect an extension or deepening of the curbs.