The Watpac Limited (ASX: WTP) share price is up 25% since early October 2018 to see the shares hit a record high of 93 cents today on a market cap around $153 million.
The reason for the Watpac share price rise is because BESIX Group SA is effectively taking over the company after acquiring a 91.8% stake off market. In effect BESIX will now acquire the rest of the shares it does not own in Watpac at 92 cents per share to complete the takeover.
Watpac and BESIX have worked as partners in different ways since 2013 and the combined group will have more expertise to compete for civil contracting engineering work.
Watpac is an engineering and construction business engaged as a civil contractor across all the main states of Australia. It has over 700 employees and in FY 2018 took in more than $1.1 billion in revenues for an underlying profit of $20.6 million.
