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.