Sembawang makes third offer to Macmahon
By Helen Wright15 February 2013
Singapore-based contractor Sembawang has made a third, unconditional offer of AU$ 35 million (US$ 36 million) to Australian contractor Macmahon to acquire selected construction projects.
Macmahon, which has twice rejected offers by Sembawang to buy all or part of its construction business, said it was considering the proposal – a change in tone from its previous outright rejections.
Sembawang is pushing to outmanoeuvre rival bidder Leighton, which holds a majority stake in Macmahon and helped it to raise equity at the end of last year. Leighton made an offer of AU$ 20 million (US$ 21 million) to buy the majority of Macmahon’s construction projects, and has been considered the preferred suitor.
In its latest stock exchange announcement on the offer, Sembawang highlighted that it was offering to acquire the assets on the same terms as Leighton but at a higher price.
It also said the new offer did not come with any of the conditions of its previous offers, including requirements for due diligence and shareholder approval.
Sembawang’s previous bids offered AU$ 38 million (US$ 40 million) for the assets.
Macmahon has scheduled a shareholder vote over the sale in Perth at the end of this month.