10/01/2013 - 06:32

Sembawang makes new $38m Macmahon offer

10/01/2013 - 06:32

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Sembawang makes new $38m Macmahon offer

India-owned Sembawang Australia has widened its offer for Macmahon Holdings’ construction division, announcing a $38 million offer that also includes the purchase of the rail business. 

The new offer is an alternative to Semabawang’s previous initial offer of $25 million, which was only for the construction business and on the same terms as Macmahon’s agreement with major shareholder Leighton.

The initial offer was conditional on Sembawang – a wholly-owned subsidiary of engineering and construction group Punj Lloyd - being granted due diligence access from Macmahon however that was denied because of the existing agreement with Leighton.

Leighton had last month executed an agreement to buy the majority of Macmahon’s construction business for around $20 million.

Leighton holds a 24 per cent interest in Macmahon.

Sembawang today said its new $38 million offer concerns the purchase of the “construction business and for the avoidance of doubt this includes [the] rail business”.

The new offer is subject to due diligence, which Semabawang wants to complete by the end of this month.

Sembawang’s original offer of $25 million for Macmahon’s construction business is still on the table.

Macmahon today said it would consider Sembawang’s new offer.

Shares in Macmahon climbed 0.5c to 28c at 0904 AWST. 

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