Punj Lloyd subsidiary bids for Australian Machmohan Holdings' construction business
10 January 2013
Australian contract mining and construction company Macmahon Holdings today said Sembawang Australia, a Punj Lloyd subsidiary had lodged another bid to buy its construction business, at a reported price that is $5 million more than a current takeover agreement.
The Australian company confirmed in a statement that it had received a revised, two-part proposal for the acquisition of either a portion or all of its construction business from Sembawang Engineers and Constructors Pte Ltd.
"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 an AAP news agency report, MacMahon had been looking to become a dedicated full service mining contractor, and had agreed to a $20 million deal to sell its construction business to major shareholder Leighton Holdings.
However, Sembawang Australia had since put in a rival offer for the construction business.
The offer was conditional on Sembawang getting due diligence access from MacMahon, which was denied due to the agreement in place with Leighton.