Sembawang continues its Macmahon buyout plan

Sembawang is at it again, making another offer to purchase the construction arm of Macmahon Holdings.

Macmahon has previously rejected a number of offers made by Sembawang Australia and has already struck a deal with Leighton Holdings over the sale of its troubled construction business.

On Thursday, Macmahon announced it had received another offer from Sembawang valuing the construction business at $35 million.

"The board is considering the proposal and will continue to keep the market informed in accordance with all legal and regulatory requirements," Macmahon said in a statement.

In a letter to Macmahon, Sembawang said it was prepared to make an unconditional offer, subject only to the execution of a formal sale and purchase agreement with Macmahon.

"Sembawang anticipates that the sale agreement will be on consistent terms as the agreement entered into with Leighton, subject to any required alterations that may be required in order to substitute Sembawang as the purchaser," Sembawang’s letter said.

"For the avoidance of doubt, the offer is not subject to due diligence, finance, board approval, any regulatory or shareholder approvals or any other conditions."

Macmahon last year announced they were shifting focus towards becoming a mining services company and have entered an Asset Purchase Agreement for their construction business with their largest shareholder Leighton Holdings.

It was this announcement that kicked off what was to be a bizarre war of words between Macmahon and Sembawang.

Semabwang made a number of offers to acquire the construction company, which were unanimously rejected by Macmahon, citing “the conditional nature of the proposal and the other uncertainties relating to Sembawang’s ability to complete the transaction with Macmahon”.

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