Macmahon rejects Sembawang – again

The bizarre war of the press release continues today between Macmahon Holdings and Indian based Sembawang.

Yesterday morning Australian Mining reported Sembawang had withdrawn all offers and would not be making any further bid to acquire Macmahon’s construction business.

However, by late afternoon Sembawang had submitted yet another proposal, re-tabling its Part B offer which matches the terms of the asset purchase agreement Macmahon has entered into with Leighton Holdings, plus an additional $AUD5 million.

Today Macmahon announced that it rejects this offer, stating that the Sembawang proposal came with significant uncertainty and risk which is not in the interest of the company’s shareholders.

In the statement Macmahon also commented on “Sembawang’s inconsistent conduct, including its breach of normal commercial confidentiality”.

Yesterday Sembawang released a private email chain, purporting to be between the two company’s chief executives.

Macmahon is continuing to finalise the details for February’s Extraordinary General Meeting so shareholders can consider the Leighton transaction.

*Update*

This afternoon Sembawang hit back at Macmahon's rejection of their offer.

In a statement the company's CEO Richard Grosvenor said the only reason there would be significant uncertainty and risk surounding Sembawang's proposal is "if the information in the data room was not commercially palatable".

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