Australian contract mining and construction company Macmahon Holdings today said Sembawang Australia, a subsidiary of Punj Lloyd, has lodged another bid to buy its construction business, reportedly with an offer which is US$5 million more than a current takeover agreement.
Macmahon Holdings confirmed in a statement that it has received a revised, two part proposal to acquire either a portion or all of its Construction Business from Sembawang Engineers and Constructors Pte Ltd (Sembawang).
"The Board is considering the proposal and will continue to keep the market informed in accordance with all legal and regulatory requirements," it said.
According to a report by AAP news agency, MacMahon has been looking to become a dedicated full service mining contractor, and has agreed to a $20 million deal to sell its construction business to major shareholder Leighton Holdings, it said.
However, Sembawang Australia has since lodged a rival offer for the construction business.
The offer was conditional on Sembawang being granted due diligence access from MacMahon, but that was denied because of the agreement in place with Leighton.
MacMahon said Sembawang had increased its offer to buyout the construction business for $38 million, up from the $25 million it had offered on January 2.
Alternatively, Sembawang has offered to replicate the terms of MacMahon's agreement with Leighton, but beat the offer price by $5 million.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
