Clough sells equity stake in Shedden
3 January 2008
Engineering and construction company Clough Limited (ASX:CLO) today announced that it
has reached agreement with Uhde to sell its equity stake in engineering firm Shedden Uhde
for $40m, while retaining an Engineering Services Cooperation Agreement.
John Smith, Clough’s CEO commented “Over the past five years as an equity partner with
Uhde in Shedden Uhde, we have enjoyed a very constructive relationship, both with the
management of Shedden Uhde and with the Directors of Uhde GmbH.
“However, strategically Uhde is primarily focussed on engineering for the downstream oil
and gas industry, whilst Clough is looking to provide a full EPC service to the upstream
sector. Shedden Uhde also provides engineering services to petrochemical and chemical
industries, which are non-core to Clough’s business.”
“The transaction is expected to generate an additional profit of around $20m.”
The Engineering Services Agreement (ESA) sets forth the basis on which Clough and
Shedden Uhde will continue to cooperate post the equity sale.
This ESA will provide Clough with continued access to Shedden Uhde’s engineering
expertise and resources in Australia and Thailand with the intent to work together where
opportunities add value to both companies.
“Going forward, we look toward a continuing relationship that adds value to both companies
and to our clients,” added Mr Smith.
Ends
For further information, please contact:
John Smith, Chief Executive Officer +61 8 9281 9407
Gaye Gelok, Manager Communications & Marketing +61 8 9281 9451/0413 336 323
About Clough
Clough is an Australian based multidisciplinary engineering, construction and asset support
contractor. The Company operates in Australia and South East Asia in industry sectors that
include offshore and onshore oil and gas, minerals, water and related infrastructure. Clough
has significant capability in project management, engineering, supply chain management,
fabrication, construction, commissioning, and operations and maintenance.