JOHANNESBURG (miningweekly.com) – Contracting group Cimic on Tuesday unveiled a planned takeover of Perth-based project house Macmahon, only months after it made a bid for engineering firm UGL.
Cimic advised Macmahon shareholders that it intended to offer A$0.145 a share for all the shares that it did not already own in the company, sending the takeover target’s stock up 31.8%, or A$0.03 a share, to A$0.14 apiece.
Cimic has been an investor in Macmahon since June 2007, and owns 20.54% of the company.
Cimic stated in a release to the ASX that the offer was unconditional and that the price, which was a 37.6% premium to the Macmahon one-month volume weighted average price, would not be increased during the offer period.
Macmahon has advised its shareholders not to take any action in relation to the offer, until the firm’s directors have issued a formal recommendation.
It is Cimic’s intention to conduct a strategic review of Macmahon’s business to drive operational efficiencies and improvements to projects and to identify ways in which both companies could benefit from their complementary skills and capabilities. The company further plans to reconstitute Macmahon’s board and will seek to remove Macmahon from the official list of the ASX.