Cimic inches into Macmahon

PERTH (miningweekly.com) – Despite failing to impress with its bid, ASX-listed Cimic has increased its shareholding in project house Macmahon to 22.95%.

The contracting group last week made a play for Macmahon, offering shareholders A$0.145 a share for all of the shares not already owned in the company.

Cimic’s initial shareholding in Macmahon totalled 20.54%.

Macmahon has urged shareholders not to take any action on the takeover offer, pointing out that the offer price did not represent fair value for the company, given that Macmahon had a robust balance sheet with minimal debt, major project expansions on the horizon, including the contract for gold project Tropicana, as well as the improved industry outlook.

Macmahon has warned that shareholders who accept the Cimic offer could miss out on any future growth opportunities, or on any potential superior offers that might arise.

Cimic has said that it will conduct a strategic review of Macmahon’s business once it has acquired its assets, to drive operational efficiencies and improvements to projects and to identify ways in which both companies could benefit from their complementary skills and capabilities. The company further plans to reconstitute Macmahon’s board and will seek to remove Macmahon from the official list of the ASX.