ATON lets M&R offer lapse
German investment house ATON has allowed its R7.6-billion offer for JSE-listed Murray & Roberts (M&R) to lapse after failing to obtain clearances or approvals in South Africa, by September 30.
ATON already owns 44% of M&R, and initially made an offer to buy the remainder of shares for R15 apiece, but later increased the offer to R17 a share.
The offer was rejected by the M&R independent board, which said the amount undervalued the group and its prospects.
In July, South Africa’s Competition Commission recommended to the Competition Tribunal that the proposed acquisition be prohibited. The commission argued that it would result in a substantial lessening of competition in shaft-sinking, contract mining, mine development and underground construction.
The Competition Tribunal was set to hear arguments on the commission's recommendation in December and January.
There were also significant risks in extending the long-stop date, including the exposure associated with maintaining in place the cash confirmation connected with the offer, ATON said in a statement.
M&R's share price on the JSE fell by more than 7% on Tuesday afternoon.
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