Macmahon knocks back Sembawang
The contractor said it would deny Sembawang's requests for access to due diligence on the basis that the proposal was not in the best interests of shareholders, due to remaining uncertainty over the bid.
"[Macmahon] requested clarification from Sembawang about its previous proposals as they remained non-binding and highly conditional," Macmahon said in a statement to the stock exchange late on Monday.
It said the confirmation was not forthcoming, while Sembawang argued it could not table an unconditional bid without first gaining access to Macmahon's books.
Macmahon said the proposal to sell the assets to major shareholder Leighton Holdings remained in place.
But adding to the confusion on Monday was another Sembawang letter sent to Macmahon, reiterating that a second part of its original offer, for a number of projects within Macmahon's construction business, remained valid.
Despite the latest rejection from Macmahon, Sembawang chief executive Ric Grosvenor said he would "keep his legal options open".
Macmahon, which is 24 per cent owned by Leighton Holdings, also took a swipe at Sembawang's decision to release private emails documenting negotiations between the two company chief executives.
Frequently Asked Questions about this Article…
Macmahon Holdings formally rejected Sembawang Australia's bid to take control of its construction assets and refused Sembawang's requests for access to due diligence, saying the proposal was not in the best interests of shareholders amid ongoing uncertainty.
Macmahon said it would deny access because Sembawang's proposal remained non‑binding and highly conditional, and the company believed the bid was not in shareholders' best interests given the remaining uncertainty.
Sembawang said it could not present an unconditional bid without first gaining access to Macmahon's books, which it needs to complete the necessary due diligence before making a firm offer.
Macmahon confirmed that a proposal to sell the construction assets to major shareholder Leighton Holdings remained in place; the article notes Leighton owns 24% of Macmahon.
Yes. Sembawang sent another letter to Macmahon reiterating that a second part of its original offer — for a number of projects within Macmahon's construction business — remained valid.
Sembawang's chief executive Ric Grosvenor said he would "keep his legal options open," indicating the company may consider legal steps, though no specific litigation was announced in the article.
Macmahon criticised Sembawang for releasing private emails that documented negotiations between the two companies' chief executives, taking a swipe at that decision in its statement.
Investors should look for further stock exchange announcements or clarifications from Sembawang about its proposals, any formal change to the offer, confirmation on the proposed sale to Leighton Holdings, and any developments related to possible legal action mentioned by Sembawang's CEO.
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