An unconditional $35 million offer from Sembawang Australia is being considered by the Macmahon Holdings Board and will be put to shareholders this week. The offer to purchase the company’s construction projects is $5.4 million higher than Leighton Holdings’ bid and at the top of independent consultant’s Ernst & Young’s ‘fair value’ range.
Sembawang previously made a $35 million offer to acquire the projects which was rejected by Macmahon’s Board because it was non-binding and conditional.
Chief executive officer of Sembawang’s parent company Sembawang Engineers and Constructors, Richard Grosvenor, says, “Our offer addresses all of the Macmahon Board’s earlier concerns and clearly is in the interest of Macmahon’s minority shareholders.
“The acquisition of these projects is in line with Sembawang’s objective to build a construction business in Australia on the back of our Wavebreak proposal on the Gold Coast. We have the resources and expertise to manage and complete these projects successfully,” he says.
Sembawang has available cash and existing facilities to fully fund the offer and guarantee the performance of the contracts post acquisition.
Sembawang is a leading engineering, procurement and construction group with a global presence from offices in Malaysia, Australia, Indonesia, India, China, United Arab Emirates, Hong Kong and Bahrain.
The company specializes in handling a diverse spectrum of technologically challenging and complex projects within the niche sector of mega infrastructures, high rise buildings and utility works.
Sembawang has constructed several award-winning projects including Singapore’s Changi international airport and light rail system, the high-end residential Jumeirah Island villas in Dubai and a mixed commercial development known as The Exchange in China’s Tianjin.