Kentz falls most in eight months after sales of shares

Kentz Corp, the Clonmel-headquartered oil and gas engineering company whose clients include Exxon Mobil, fell the most in eight months in London trading after two directors agreed to sell shares.

Kentz dropped as much as 9.9% during London trading to 426.1 pence, the biggest intra-day decline since Aug 4. Despite a late uptick, shares closed at £4.38, still down more than 7%.

Kerbet Ltd, which holds Kentz shares for non-executive directors Tan Sri Mohd Razali Abdul Rahman and Hassan Abas, yesterday sold 15 million shares, or 12.89% of Kentz’s capital, “via an accelerated bookbuild secondary placing”, Kentz said yesterday.

Kerbet will retain 13.64% of Kentz’s ordinary shares post-sale, which it has agreed to hold for at least six months.

Investec Plc and UBS AG co-managed the sale, which started and ended yesterday, Kentz said.

Kerbet represents the holdings of Tan Sri Mohd Razali Abdul Rahman and Hassan Abas who are both non-executive directors of Kentz. Kerbet will continue to hold 13.64% of the current issued ordinary share capital of Kentz following the placing.

Commenting on the placing, Tan Sri Mohd Razali Abdul Rahman, of Kerbet, said: “The proposed sale is aimed at achieving greater portfolio diversification, but Kerbet remains a firm supporter of the company with a material stake in it, and I am looking forward to continuing in my role as chairman.”