PERTH (miningweekly.com) – Takeover target Macmahon has urged shareholders to reject an "inadequate and opportunistic" takeover offer from fellow-listed Cimic.
Macmahon told shareholders on Monday that an independent expert has concluded that Cimic’s A$0.145 a share offer was neither fair nor reasonable, with Macmahon pointing out that the timing of the offer was opportunistic and did not reflect the improved outlook for the mining services sector.
The independent expert has valued Macmahon shares at between A$0.117 and A$0.203 a share.
Macmahon also told shareholders that the company had significantly improved prospects from its existing contracts and had a strong tender pipeline. The company is anticipating a significant turnaround in its financial performance over the next 18 months and has provided an earnings before interest and taxes guidance of between A$30-million and A$35-million for the 2018 financial year.
The company is also pursuing new opportunities, pointing out that some A$6.4-billion worth of potential new contracts have been targeted, with Macmahon being shortlisted for a number of these opportunities.
Cimic has, meanwhile, declared its offer free from any prescribed occurrences and has urged Macmahon shareholders to accept the bid before the close of the offer period on March 9.