STATS UK has announced that an agreement to sell 100% of its issued share capital to SRJ Technologies Group will not go ahead.
The Aberdeenshire-based pipeline technology firm reached agreement on the transaction in December with SRJ, an Australian listed pipe repair company.
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 had hoped to acquire STATS UK for £73m, following shareholders executing a 100% share purchase agreement.
SRJ said it continued to believe in the merits of the merger, but the decision was the result of market volatility caused by macro, geopolitical and supply chain events.
“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.”
SRJ and STATS confirmed they will continue to collaborate at an operational level in multiple regional markets, including across the UK, US, Canada, Middle East and Asia Pacific.
Leigh Howarth, STATS chief executive, 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.”
Headquartered in Kintore, STATS' principal activity is the provision of pressurised pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries.
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