Clough to spend $98m for Forge stake

Clough Ltd will spend between $55 million and $98 million to take a major stake in
smaller fellow engineering and construction contractor Forge Group Ltd.
Clough's potential shareholding in Forge is between 31 per cent and 56.5 per cent.
Under a placement, Clough will invest about $19.5 million for about 10.25 million
Forge shares at $1.90 per share, subject to shareholder approval.
After this transaction is completed, Clough intends to make a proportional cash
takeover offer at $2.10 per share for 50 per cent of Forge shares.
"The proposed transactions provide both companies with access to growth and
operational benefits that the companies believe would not otherwise be available if
they continued to operate in isolation," Clough said in a statement.
Shares in Clough closed 3.5 cents, or 4.07 per cent, weaker at 82.5 cents.
Forge shares finished 12 cents, or 5.19 per cent, lower at $2.19.