French construction group Vinci is set to deepen its presence in...

French construction group Vinci is set to deepen its presence in Australia after making an indicative takeover bid for Seymour Whyte worth up to $126 million.
The Brisbane-based engineering group said on Thursday that Vinci is expected to offer between $1.36 and $1.43 per share in cash for the group, and may also pay a special dividend.
Seymour Whyte has been holding talks with several potential suitors, including construction group Watpac.
The engineering group said had entered exclusive talks with VInci and had agreed to allow the French group to do due diligence to see whether "a transaction capable of board recommendation can be developed and presented to shareholders."
"The indicative proposal is subject to a number of conditions, including access to due diligence, retention of management and relevant regulatory approvals," the company said. "There is no certainty that the indicative proposal will result in any binding offer for Seymour Whyte's shares."
Vinci, which worked on WA's Wheatstone liquefied natural gas project, has been expanding its presence in Australia, acquiring Queensland electrical engineering group J&P Richardson in 2016.
A French takeover would be the latest in a long line of foreign takeovers of Australian construction groups as multi-national construction companies seek a foothold to gain local contacts and expertise to bid on billions of dollars of upcoming infrastructure projects. Spanish construction and infrastructure companies Grupo ACS, Acciona and Ferrovial are among the foreign groups that have snapped up local companies
Vinci has more than 183,000 employees, operates in more than 100 countries and has annual revenues of €38 billion, more than half of which are derived from France.
It has several businesses, with most of its income generated through managing infrastructure concessions, such as tollroads, bridges and airports, with a quarter of its earnings generated through contracting. It has been focusing on international expansion to diversify away from France and was part of a French business delegation that came to Australia in 2016 to assess opportunities.
Seymour Whyte, which has market capitalisation of $97 million and owns tunnelling specialist Rob Carr, has offices in Brisbane, Sydney, Melbourne and Townsville, and works on construction and engineering projects worth up to $460 million.
Its shares are controlled by its founding families. John Seymour, along with Garry Whyte, began the Seymour Whyte group of companies in 1987. Mr Seymour controls 19.5 per cent of the stock. The family of Mr Whyte, who died in March 2014, controls almost 23 per cent of the company, while Rob Carr's founders, Robert and Catherine Carr, own almost 11 per cent.