In December, Stats revealed that it had reached agreement on the transaction with SRJ Technologies Group, a publicly listed company on the Australian Securities Exchange (ASE).
SRJ planned to undertake an offer of shares to fund the deal and provide working capital for the combined group, but has now advised the ASE that the transaction will not proceed.
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.
In a statement, the firm noted: “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.”
The two groups confirmed they will continue to collaborate at an operational level in multiple regional markets including across the UK, Canada, the US, Middle East and Asia Pacific.
Headquartered in Kintore, near Aberdeen, Stats principal activity is the provision of pressurised pipeline isolation, “hot tapping” and plugging services to the global oil, gas and petrochemical industries.
Leigh Howarth, Stats’ chief executive, said: “We have worked closely with the SRJ team to deliver this deal but due to a combination of factors out with 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 capitalise on the synergy between both organisations.”
Stats operates from its UK headquarters in Kintore, Edmonton in Canada, Houston in the United States, Abu Dhabi, Oman and Qatar in the Middle East, Kuala Lumpur in Malaysia and Perth, Australia.