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CIMIC sends Macmahon bid to the Takeovers Panel for review

Contractor CIMIC has turned to the Takeovers Panel in its attempt to acquire Macmahon Holdings, which is trying to block the bid through a deal with Indonesia’s PT Amman Mineral Nusa Tenggara (AMNT).

CIMIC has requested the Takeovers Panel review the proposed deal with AMNT, which would result in the Indonesian company receiving up to 50.1 per cent of Macmahon in exchange for $US150 million worth of equipment from the Batu Hijau copper-gold mine.

The deal with AMNT would also see Macmahon secure a major mining contract at the mine worth about $US2.7 billion over its life.

The Takeovers Panel was approached because CIMIC believed Macmahon’s “target’s statement and first supplementary target’s statement are misleading and deceptive in several aspects including regarding prospective financial information about Macmahon, the AMNT proposed transaction and the independent expert’s report.”

CIMIC is also seeking to reverse on-market purchases of Macmahon shares that have occurred since the target’s statement was released.

Macmahon responded that CIMIC has “made assertions that are without reasonable foundation for the purpose of gaining traction in the closing phase of the offer.”

In a statement, the Takeovers Panel said it had “no comment on the merits of the application” and “no decision had been made whether to conduct proceedings”.

CIMIC’s 14.5 cents per share offer, which valued Macmahon at about $175 million, will close on March 9.

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