TORONTO — Energy technology and infrastructure company Shawcor Ltd. is changing its name and launching a strategic review that could lead to the sale of its pipeline and oilfield asset management divisions.
The Toronto-based company said in a press release on Monday that it was seeking to change its name to Mattr, a move conditional on obtaining regulatory and shareholder approval and likely not to be completed until September. first half of 2023.
If the name change takes place, the company’s shares will also trade under a new ticker symbol.
Shawcor also announced on Monday that it will conduct a strategic review of its Pipeline Performance Group, Shaw Pipeline Services and Oilfield Asset Management business units. He said the review would consider a range of options, including the possible sale of all three units.
In the press release, Mike Reeves, president and CEO of Shawcor, said the company aims to simplify its portfolio and reduce volatility. He said selling the pipeline business would allow the company to focus on its higher-margin, less volatile Composite Systems and Automotive & Industrial segments.
The proposed name change would help align the company with its new direction, Reeves added.
“For many, the Shawcor name is synonymous with pipeline-related products or services. As we look to the future, rebranding our company is an important step to better reflect the energy, creativity and innovation of this organization, as well as our leadership in delivering high value, material-based products to the industrial and critical infrastructure markets,” he said.
Tom Holloway, Shawcor’s chief financial officer, said now is the time to get a good price from a sale or other transaction. Global companies are in the midst of a multi-year pipeline construction cycle, and Shawcor already has a large backlog of secure work.
Holloway said that in addition to supporting the expansion of Shawcor’s other business units, proceeds from any sale would be used to repay and return capital to shareholders.
The company stressed that there was no guarantee that a transaction will take place, and said that no specific timetable was in place for the completion of the strategic review.
Shawcor’s share price rose 20 cents, or 2.55%, to $8.04 at the end of trading on the Toronto Stock Exchange on Monday.
This report from The Canadian Press was first published on September 12, 2022.
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The Canadian Press