Macmahon Holdings today announced that Sembawang Australia had made a revised offer of $38 million to buy its construction business.
Sembawang first announced it had offered the company $25 million last week, putting them in competition with Macmahon’s largest shareholder Leighton, who already owns 24 per cent of the company.
The first offer was conditional on Sembawang conducting due diligence, however Macmahon denied the company access because of an agreement that was already in place with Leighton Holdings.
In a statement released on Monday, Macmahon denied they had received any offer from the Indian based firm before it entered into a sale agreement with Leighton.
Sembawang chief executive Richard Grosvenor said in a statement released at the weekend that Sembawang had approached MacMahon on November 26 regarding the potential purchase of its construction business, news.com.au reported.
Macmahon denied the allegations, saying “the only proposal received from Sembawang to date is its unsolicited, non-binding, incomplete and conditional proposal” sent on January 3, 2013.
Leighton had already agreed to purchase Macmahon’s construction assets, signing an Asset Purchase Agreement (APA) on Christmas Eve.
The sale of the business to Leighton had been expected to be effective from December 31, although the deal was subject to shareholder approval at a meeting in February, the Australian reported.
Macmahon said they would consider Sembawang's new proposal.
Australian Mining last month reported Macmahon's construction business was being put up for sale in an effort to shift the company’s focus towards becoming a fully fledged mining contractor.