Kintore, Aberdeenshire-based oil and gas pipeline specialist STATS (UK) Limited has confirmed that a deal announced in December to sell 100% of its issued share capital to Australia-listed SRJ Technologies Group plc (SRJ) will not go ahead.
The collapse of the deal is blamed on “the result of market volatility caused by underlying macro, geopolitical and supply chain events.”
SRJ Technologies has its head office in Jersey and its shares trade on the Australian Securities Exchange.
“STATS reached agreement on the transaction in December (2021) with SRJ, a publicly listed company on the Australian Securities Exchange …” said STATS.
“SRJ planned to undertake an offer of shares to fund the deal and provide working capital for the combined group, but has advised the Australian Securities Exchange that the transaction will not proceed.
“The company said it continued to believe in the merits of the merger but the decision was the result of market volatility caused by underlying macro, geopolitical and supply chain events.”
A statement from SRJ said: “SRJ and its advisors explored several Australian and global funding alternatives to raise the capital required to complete the transaction but the significant changes to underlying market conditions since the start of 2022 made this extremely challenging.
“The acquisition of STATS will not proceed and the share purchase agreement executed on 14 December 2021 will be terminated.”
SRJ and STATS confirmed they will continue to collaborate at an operational level in the UK, Canada, USA, Middle East and Asia Pacific.
STATS CEO Leigh Howarth said: “We have worked closely with the SRJ team to deliver this deal but due to a combination of factors outwith our control we have not been able to conclude the fundraising and therefore the transaction will not complete.
“STATS remains in great shape and it is business as usual as we take advantage of some tremendous opportunities, particularly in the Middle East and North America.
“We will focus on delivering client projects safely and efficiently while continuing to work collaboratively with SRJ to capitalise on the synergy between both organisations.”