WSP Plans New Stock Offering, Reviving Speculation About Deal
The WSP logo on the company's building in Montreal in 2017. Photo: Funke via Wikimedia Commons
WSP Global Inc. has priced shares for a stock offering it hopes will raise $437 million, part of which could be used for possible acquisitions.
The news boosted industry speculation that a deal to acquire AECOM could be back on the front-burner at Montreal-based WSP, according to analyst reports quoted on the website Seeking Alpha.
In addition to the stock offering, priced at $86 a share, the company announced private placements of another $64 million worth of common stock, adding to the company's financial resources.
WSP says it will use the funds raised for general corporate purposes, strengthening its balance sheet and possible acquisitions.
“The successful completion of the offering and private placement will further position WSP with a stronger balance sheet, affording us with maximum financial flexibility to continue to pursue our strategic ambitions by seizing upon various opportunities that will arise from the accelerated changes to our industry,” commented Alexandre L’Heureux, president and CEO of WSP.
The Los Angeles Business Journal also had reported on March 24 that a WSP-AECOM deal was "sidelined."
The two design-focused companies declined to comment on the status of any deal discussions at that time, as they have since rumors of a combination began to surface late last year.
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