Cimic sells Macmahon stake

Spanish-controlled CIMIC Group has backed away from its former takeover target Macmahon Holdings, selling its 23.6 per cent stake in the Perth company for $46.8 million.

Cimic lobbed a 14.5 cents per share takeover bid for Macmahon earlier this year, which was dismissed by the takeover target as a low-ball offer.

The offer pushed Macmahon’s second-largest shareholder, Forager Funds Management, to buy more shares in the business to gain more influence over Macmahon’s independence.

A key factor in Macmahon's successful takeover defence was an agreement with Indonesia-based PT Amman Mineral Nusa Tenggara for the provision of earthmoving and mining services, while also exchanging shares for the purchase of mining equipment.

The Amman deal is subject to a shareholder vote of approval at a meeting next week, which would make Amman the largest shareholder in Macmahon, if successful.

Cimic said today it had sold its entire stake on the ASX at 16.5 cents per share, which was a 65 per cent premium to Macmahon’s volume-weighted average price in the three months leading up to its bid.

In a separate statement, Macmahon revealed the block share trade was managed by Hartleys, and that the shares were bid for by a number of new and existing Macmahon investors.

“Macmahon welcomes these new shareholders to the share register,” Macmahon said.

Macmahon shares were unchanged at 16.5 cents each at 11am, while Cimic shares were 1.3 per cent lower to $38.30 each.