Murray & Roberts Sets Price Tag After Rejecting Helmig Bid

(Bloomberg) -- Murray & Roberts Holdings Ltd. sees a fair value for the South African engineering and construction company at as much 9.8 billion rand ($821 million), setting a price tag for Germany's Helmig family after rejecting an offer last week.

After reviewing an independent report by BDO Corporate Finance Proprietary Ltd., Johannesburg-based Murray & Roberts values the company at between 20 rand and 22 rand a share, it said in a statement Wednesday. That compares with a 15-rand offer made by Aton GmbH, the Helmig's investment group, which already owns a 33 percent stake.

For its part, Aton reiterated the 15 rand-a-share bid, adding that two top-ten shareholders had already agreed to sell out at that level. The offer “will provide Murray & Roberts shareholders with the opportunity to realize significant and attractive value,” it said in an emailed statement.

The stock traded 1.3 percent higher at 14.27 rand at the close in Johannesburg. That values the company at 6.3 billion rand.

Read More: Murray & Roberts Jumps by Record on Unsolicited Takeover Bid

Aton, which has investments in mining, engineering, aviation and health technology, is making a second attempt at a deal after talks to merge M&R's underground mining unit with an Aton business broke down two years ago.

On Thursday, Aton said it had agreed to a deal with Cape Town-based money manager Allan Gray to buy shares at 15 rand each that will boost its shareholding to almost 40 percent. In a note to clients dated March 1, analysts at SBG Securities valued the company at 19.80 rand.

To contact the reporter on this story: John Bowker in Johannesburg at jbowker2@bloomberg.net.

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Andrew Noël, Liezel Hill

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