CIMIC responds to McMahon’s Indonesian HOA

Company News

by Jessica Ellerm

CIMIC Group Limited (ASX:CIM) has urged Macmahon (ASX:MAH) shareholders to accept its takeover offer for Macmahon Holdings after news broke yesterday that the company had signed an HOA with an Indonesian mine.

CIMIC does not believe Macmahon’s 1H17 results provide adequate evidence the company can stage a turnaround via the deal, and believe the HOA is uncertain and dilutive for shareholders.

The contractor also outlined it sees the rushed proposal as increasing the risk profile of the company.

CIMIC is offering Macmahon shareholders $0.145 per share in cash. Macmahon shares closed 10 percent higher yesterday at $0.165.

CIMIC Group reported a full year net profit of $580.3M at 31 December 2016.

Jessica Ellerm

Finance News Network
Jessica joined FNN in April 2016 and presents the Australian Share Market Outlook, and reports on the morning's leading business stories. Alongside FNN Jessica is a fintech industry commentator, writing for her own blog and a number of international online publications.