Macmahon Holdings will move ahead with an agreement with Indonesian miner PT Amman Mineral Nusa Tenggara (AMNT) after its shareholders backed the proposal.
Securing shareholder approval is a positive development for Macmahon after a turbulent 2017, headlined by a hostile takeover bid from larger contractor, CIMIC.
Macmahon’s proposal with AMNT was a crucial part of it managing to fend off CIMIC, which last week offloaded its 23.64 per cent stake in the Perth-based contractor for $46.85 million.
The AMNT agreement will see Macmahon awarded a life-of-mine contract to provide earthmoving and mining services at the Batu Hijau copper-gold mine in Indonesia.
Macmahon will acquire existing mobile mining equipment from AMNT to perform these services. In return, shares equal to around 44 per cent of Macmahon will be issued to an AMNT subsidiary.
Chief executive officer Michael Finnegan thanked Macmahon’s existing clients for their support during the busy period of corporate activity for the company.
“We remain absolutely committed to delivering on our promise wherever we are operating, and look forward to building on these excellent working relationships,” Finnegan said.
The transaction still requires approval in Indonesia and also from AMNT’s financial backers before it can be executed. However, Macmahon expects to complete the deal by the end of this month.