ASX-listed SRJ Technologies Group plc in December last year struck a deal to buy the UK-based oilfield services firm STATS. However, STATS said Monday that the deal had fallen through over SRJ's inability to raise funds for the deal.
"[STATS ] has confirmed that a Share Purchase Agreement to sell 100% of the issued share capital of the company to SRJ Technologies Group plc (SRJ) will not go ahead," the company said.
"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," STATS explained.
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, STATS said.
STATS also cited a statement by SRJ, which 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 multiple regional markets including across the UK, Canada, USA, Middle East and Asia Pacific.
Leigh Howarth, STATS Chief Executive Officer, 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 capitalize on the synergy between both organizations.”