Leading mining contractor CIMIC Group has launched an unconditional takeover bid for Perth-based mining services company, Macmahon Holdings.
CIMIC, which already owns 20.54 per cent of Macmahon, is offering 14.5 cents per share for the stock it does not already own, which values the target at about $175 million.
The bid represents a premium of almost 32 per cent on Macmahon’s January 23 closing price on the ASX and has already received foreign investment review board (FIRB) approval, according to Spanish-controlled Cimic.
If the takeover is completed, CIMIC’s plans include to conduct a strategic review of Macmahon’s business to drive operational efficiencies and improvements to projects, identify ways the two companies can benefit from their complementary capabilities, and analyse the value of Macmahon’s projects.
A takeover would also result in the removal of Macmahon from the ASX and the restructure of its board. CIMIC added that Macmahon’s employees would be retained “in the ordinary course.”
According to an ASX announcement, the Macmahon board is considering a response to the offer.