Engineering group WorleyParsons is seeking to raise $322 million to fund the acquisition of AFW UK Oil & Gas, which provides services to the oil and gas sector in the UK.
WorleyParsons will acquire AFW UK for an enterprise value of PS182 million ($A303 million).
WorleyParsons on Monday said the acquisition will provide it with a "robust entry" into the UK North Sea market and accelerate the company's strategy to become a global provider of maintenance and operational services.
WorleyParsons chief executive Andrew Wood says AFW UK is an attractive acquisition.
"We are excited to enter the UK North Sea market as a leading player based in Aberdeen," Mr Wood said in a statement.
"AFW UK is a world-class integrated solutions business with best-in-class MMO (Maintenance, Modifications and Operations) capabilities and an excellent track record of international expansion."
WorleyParsons said AFW UK is a leader in its field on the UK Continental Shelf.
AFW UK represents the majority of Amec FosterWheeler's former UK upstream oil and gas operations, to be divested as a remedy to competition concerns raised in relation to the John Wood Group's acquisition of Amec FosterWheeler.
WorleyParsons will fund the acquisition through a one-for-10 fully underwritten, pro-rata entitlement offer of new shares, and existing debt facilities.
The new shares will be issued at $13.00 - an 8.7 per cent discount to WorleyParsons' closing price on Friday of $14.24.
About 24.8 million new WorleyParsons shares will be issued under the entitlement offer.
AFW UK generates annual revenue of about PS350 million and earnings of PS20 million.
WorleyParsons expects the acquisition will add to earnings per share in the first year or ownership.
The acquisition is expected to be completed by the end of October 2017.
Worley Parsons shares are in a trading halt while the company conducts the capital raising.
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