Sedgman urges no action on Cimic offer
PERTH (miningweekly.com) – The directors of ASX-listed service provider Sedgman on Wednesday told shareholders not to take any action regarding an unconditional off-market takeover offer from fellow listed Cimic Group.
Cimic, which already owns a 36.99% interest in Sedgman, on Wednesday announced its intention to launch an unconditional offer to acquire the outstanding shares in Sedgman.
The company was offering the remaining Sedgman shareholders A$1.07 a share for their interest in the mining services provider. The offer represented a 35.4% premium to Sedgman’s last closing price on the ASX.
Cimic said that the offer price was final, and would not be increased during the offer period, unless a competing offer arose.
If Cimic was successful in its bid for Sedgman, the company planned to reconstitute the Sedgman board and would review the dividend and capital management policies of the company.
However, current operational employees at Sedgman would be retained, and Cimic would look to continue the business of Sedgman, including the company’s plans to increase market and commodity diversification.
Cimic had been an investor in Sedgman for about 15 years, and its global mining contractor Thiess had joint ventured with Sedgman to deliver engineering projects.
Sedgman on Wednesday urged shareholders not to take any action, adding that Cimic would be unable to withdraw the offer, as it was specified unconditional.
The Sedgman directors would take time to consider the offer, the company said, and would provide a recommendation to shareholders.
Cimic had already received Foreign Investment Review Board approval for the offer.
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