Punj Lloyd chases Australia's Macmahon construction unit
SYDNEY (Reuters) - Punj Lloyd Ltd (PUJL.NS), stepped up its offer for the construction business of Macmahon Holdings Ltd (MAH.AX) on Thursday, looking to trump a current deal with Leighton Holdings Ltd (LEI.AX).
Punj Lloyd unit Sembawang Australia said it would offer A$38 million for Macmahon's construction businesses, including its rail business. Alternatively, it is offering to beat Macmahon's existing A$20 million agreement with Leighton for the construction assets, minus the rail business, by A$5 million.
Macmahon, which is shedding its construction arm to become a full service mining contractor, said its board was considering the proposal.
Macmahon last week distanced itself from Punj Lloyd's original approach, which did not include a dollar figure, saying it could not offer the Indian firm due diligence due to exclusivity arrangements with Leighton.
Macmahon said in December it planned to exit construction and announced a deal to transfer the majority of its construction assets to Leighton. Construction group Leighton owns 24 percent of Macmahon, according to Thomson Reuters data.
Macmahon shares jumped as much as 5.5 percent in morning trade on news of the revised offer and were last trading up 3.6 percent at A$0.285. (Reporting By Maggie Lu Yueyang; Editing by Richard Pullin)
- Tweet this
- Share this
- Digg this
- UPDATE 10-Vice-principal of South Korea school in ferry disaster commits suicide
- UPDATE 3-Avalanche kills at least 12 guides in deadliest incident on Mount Everest
- India passes halfway mark in election with BJP gaining strength
- Vice-principal of South Korea school in ferry disaster commits suicide
- Mediterranean diet may slow diabetes progression
Nitin Gadkari, former president of the Bharatiya Janata Party and a member of the BJP’s manifesto committee, speaks to Reuters. Here are the edited excerpts. Full Article