Wednesday, 27 February 2013 09:20
Jilted takeover suitor Sembawang has indicated it may make another tilt for Macmahon Holdings even though its construction arm is to be sold to Leighton Holdings.
Macmahon's shareholders on Tuesday overwhelmingly approved a deal to sell the company's troubled construction business to Leighton.
However, the Singapore headquartered Sembawang issued a statement after the meeting, saying "We'll be back".
Macmahon shareholders voted 85 per cent in favour to approve the deal at an extraordinary meeting in Perth on Tuesday, thereby rejecting a takeover offer from Sembawang Australia.
Macmahon chairman Scott-Mackenzie said the result, issued to the Australian Securities Exchange after the close of sharemarket trading, was "a strong vote of confidence" for the company's new, mining-focused strategy.
"We now look forward to delivering consistent and sustainable returns for our shareholders as a dedicated mining business, Mr Scott-Mackenzie said in a statement.
Macmahon directors earlier on Tuesday said in a statement that "Sembawang has failed to provide Macmahon with a proposal capable of execution, in spite of the extended period in which they have had the opportunity to do so".
Sembawang, a wholly owned subsidiary of engineering and construction group Punj Lloyd, lodged a new offer, valuing Macmahon's construction business at $35 million.
Macmahon said the exit from the construction business would put the company in a position for more sustainable results in the future.
Sembawang issued a statement from its Singapore headquarters saying it believed that all the construction contracting problems at Macmahon "were a symptom of poor executive management".
"We now await the crystalisation of what MAH (Macmahon) said would come to account in calendar Q3 which is the tail of this deal.
"Sembawang could never make an offer to satisfy MAH's questions - as we were never allowed into the data room LEI (Leighton) were given access to."
"We wanted to take the construction business now for a reunification with the mining contracting business later on. We'll be back."
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