After failing in a bid to buy international engineering group WorleyParsons last year, the Dubai-based Dar Group has now successfully purchased 13.35% of the company.
In a statement, the Dar Group said it "views WorleyParsons as the preeminent energy and design consultancy globally" and had "acquired the stake with a long term strategic perspective and looks forward to being a supportive shareholder".
The Dar Group statement said it had submitted an indicative proposal to acquire 100% of WorleyParsons shares in November 2016, conditional on the unanimous support of the WorleyParsons board, but the board declined to engage with Dar Group on the proposal and there had been no further discussions between the parties since that time.
In a statement to the Australian Stock Exchange, WorleyParsons confirmed that it received an indicative proposal on 14 November, 2016 from Dar Group to acquire all WorleyParsons shares for cash consideration of A$11.80 per share.
"Having reviewed the Proposal with the Company's advisers, the Board concluded the Proposal materially undervalued the Company," said the WorleyParsons statement.
"The Board therefore determined that the Proposal was not in the best interests of shareholders and advised Dar Group accordingly."
WorleyParsons said their view on the company's value took into account a number of factors including the quality and global platform of the WorleyParsons business, the current low point in oil industry activity, the historical trajectory of previous cyclical recoveries, the cost reduction programme that had not yet been fully reflected in earnings and the low operating risk profile of the WorleyParsons business.
The Dar Group said it has 18,000 employees worldwide operating from 193 offices in 58 countries. This includes a presence in Australia through the American-based aviation consultancy firm Landrum & Brown which has an office in Melbourne.
WorleyParsons grew out of a small Australian engineering consultancy Wholahan Grill & Partners founded in 1976. It acquired American engineering firm Worley in 1987 and Parsons E&C in 2004. Its focus today is in the hydrocarbons, mineral, metals, chemicals and infrastructure sectors.