Energy and infrastructure technology company Shawcor Ltd. is changing its name and launching a strategic review that could result in the sale of its pipeline and oilfield asset management divisions.
The Toronto-based company said in a news release Monday that it is seeking to change its name to Mattr, a move that is conditional on obtaining regulatory and shareholder approval and likely won’t be completed until the first half of 2023.
If the name change goes ahead, the company’s shares will also trade under a new ticker symbol.
Shawcor also said Monday it will conduct a strategic review of its Pipeline Performance Group, Shaw Pipeline Services and Oilfield Asset Management operating units. It said the review will consider a range of options, including the possible sale of all three units.
In the news release, Mike Reeves, president and CEO of Shawcor, said the company aims to simplify its portfolio and reduce volatility. He said selling the pipeline businesses would allow the company to focus on its higher-margin, less volatile Composite Systems and Automotive & Industrial segments.
The proposed name change would help to align the company with its new focus, Reeves added.
“To 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, and our leadership in providing high value, materials-based products to industrial and critical infrastructure markets,” he said.
Tom Holloway, chief financial officer for Shawcor, said the timing is right to secure 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 substantial backlog of work secured.
Holloway said in addition to supporting the expansion of Shawcor’s other business units, proceeds from a possible sale would be used to pay down and return capital to shareholders.
The company emphasized there is no guarantee a transaction will take place, and said no specific timeline is in place for the completion of the strategic review.
Shawcor’s share price was up 20 cents, or 2.55 per cent, to $8.04 in late-day trading on the Toronto Stock Exchange Monday.
This report by The Canadian Press was first published Sept. 12, 2022.
Companies in this story: (TSX:SCL)
The Canadian Press
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