Monday, 14 January 2013 08:19
India-owned Sembawang Australia says it will not make any further offers for MacMahon Holdings' construction and rail business after a deadline for the $38 million deal lapsed.
On Sunday, Sembawang issued a statement confirming that its offer for the purchase of Macmahon's construction businesses lapsed on Saturday night.
"Without acceptance and as a consequence Sembawang will not be making any further offers for the construction businesses of Macmahon," the company said in a statement.
It comes after Sembawang Australia moved to trump rival Leighton Holdings with the offer last week.
The offer was well above the current $20 million agreement Leighton struck on Christmas Eve to buy just the construction business.
MacMahon responded on Friday through the Australian Stock Exchange, saying it was not in a position to respond to the latest proposal by the deadline of 2000 AEDT on Saturday.
MacMahon asked for further clarification from Sembawang to make a "proper assessment of the merits of the proposals".
Sembawang's statement follows it threatening Macmahon with legal action and accusing it of misleading shareholders by not providing due diligence or telling the market about its November offer to buy the business.
Macmahon is looking to become a dedicated full service mining contractor.
Sembawang has also alternatively offered to pay $5 million more than the current takeover agreement ($20 million) to buy the construction business, but not all assets and not the rail business.
Sembawang Australia is a wholly-owned subsidiary of engineering and construction group Punj Lloyd.
Macmahon is due to hold a shareholder meeting in February.
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